XRP, the native currency of Ripple Labs, has encountered significant challenges in recent days. As the market grapples with uncertainty, insights from the on-chain analytics firm Coinglass reveal that a substantial $35.96 million worth of XRP is poised for potential liquidation, contingent on prevailing market dynamics.
XRP’s Critical Liquidation Levels
According to the XRP exchange liquidation map, pivotal liquidation zones are situated around $2.231 on the downside and $2.36 on the upside at the current moment. Traders at these junctures are heavily leveraged, amplifying the risk. Should the market sentiment persist and prices descend to the $2.231 level, approximately $35.97 million in long positions stand at risk of liquidation. Conversely, a shift in sentiment leading to a price surge to the $2.36 mark could jeopardize around $67.63 million in XRP, underscoring the precarious nature of current market conditions.
This data underscores a predominance of traders banking on short positions over long ones, painting a bearish picture for XRP investors.
XRP Current Price Momentum
Presently, XRP is hovering around the $2.28 mark, having witnessed a decline of over 1.35% in the past 24 hours. This downturn, coupled with prevailing market sentiment, has given rise to investor hesitation in initiating new positions, resulting in a 31% reduction in trading volume during this timeframe.
XRP Technical Analysis and Future Projections
The ongoing price volatility in XRP has manifested into a bearish head-and-shoulders pattern on the daily chart, signaling the potential for a significant breakdown. Based on recent price movements, failure to maintain the neckline of this bearish pattern and a closure of an hourly candle below the $2.24 level could trigger a 5% price decline, targeting the $2.12 level. Such a scenario could lead to the liquidation of millions in long positions.
Conversely, if the price manages to hold or surpass current levels, there remains a possibility for an upward rally, potentially reversing the current trend.
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