On September 21, 2024, XRP, the world’s seventh-biggest cryptocurrency by market cap, experienced notable price fluctuations. This resulted in the liquidation of $1.4 million in both long and short positions. Over the past few days, XRP had been in a consolidation zone between $0.559 and $0.598.
XRP Experiences False Breakout
During this ongoing consolidation, at precisely 22:00, XRP saw a price surge of over 4.5%. This led to a breakout from the consolidation zone and the liquidation of $1.14 million worth of short positions.
However, as XRP closed its one-hour candle above the consolidation zone, traders built substantial positions on the long side, anticipating a continued rally. This optimism was short-lived as XRP’s price reversed sharply, resulting in the liquidation of $241,700 worth of long positions.
Traders’ Bearish Sentiment
According to Coinglass, the XRP long/short ratio currently stands at 0.90, indicating bearish market sentiment among traders. Despite this, 52.5% of top traders maintain short positions, while 47.5% hold long positions.
XRP Current Price Momentum
At the time of writing, XRP is trading near $0.597, having experienced a price surge of over 1.75% in the last 24 hours. During the same period, its trading volume decreased by 24%, indicating lower participation from traders and investors.
XRP Technical Analysis and Upcoming Levels
Technical analysis suggests that XRP is in an uptrend and is currently consolidating within a very tight range. Should it break out of this consolidation zone and close a daily candle above it, there is a strong possibility that XRP’s price could soar by 10% to reach the $0.65 level. Conversely, if XRP fails to close the daily candle above this zone, it is likely to continue struggling within it.
Presently, XRP is trading above the 200 Exponential Moving Average (EMA) on a daily time frame. When an asset’s price is above the 200 EMA, it typically indicates an uptrend.
