TLDR
- XRP price dropped 6.49% in 24 hours as crypto market saw $657 million in liquidations
- Bitcoin’s rejection at key technical level caused correlated sell-off across major cryptocurrencies
- XRP Open Interest declined by $140 million, indicating overleveraged positions were cleared
- Price revisited key support level at $2.139, historically a strong buying zone
- Technical analysis shows bearish trend line resistance at $2.270 with potential for further decline
XRP experienced a sharp price decline today, falling 6.49% as part of a broader cryptocurrency market selloff. The drop occurred alongside Bitcoin and Ethereum, which fell 3.89% and 4.20% respectively.
The cryptocurrency market witnessed $657 million in liquidations over the past 24 hours. This massive liquidation event affected multiple digital assets, with XRP bearing its share of the selling pressure.
Bitcoin’s rejection at a critical technical level triggered the widespread decline. Due to XRP’s high correlation with Bitcoin’s price movements, the altcoin followed the market leader lower.
XRP’s Open Interest dropped by $140 million in just 17 hours, according to VeloData. This reduction indicates that overleveraged trading positions were forced out of the market during the price decline.
The 7% drop in 12 hours resulted in $23 million worth of XRP long liquidation. This sudden movement ended an 18-day period of range-bound trading that had created a pattern of lower highs and lower lows.
Technical Analysis Shows Key Support Level
The price decline brought XRP back to a crucial support level at $2.139. This level represents the highest traded volume point from May 4, which previously led to an 18% rally.
Technical analysts view this support zone as potentially stable. The area could absorb selling pressure and form a price bottom if buying interest emerges.
XRP’s recent price action formed a falling wedge pattern during its 18-day consolidation period. While falling wedges typically offer bullish breakout opportunities, the recent crash broke to the downside instead.
The cryptocurrency is currently trading below $2.270 and the 100-hourly Simple Moving Average. Price action shows consolidation after reaching a low of $2.132.
Resistance Levels and Future Outlook
XRP faces immediate resistance near the $2.244 level, which aligns with the 50% Fibonacci retracement of the recent decline. The next major resistance sits at $2.270, where a bearish trend line has formed.
If XRP clears the $2.270 resistance, the next target would be $2.30. Further upside could push the price toward $2.320 and potentially $2.350 in the near term.
However, failure to break above $2.270 could trigger another decline. Initial downside support lies at $2.180, followed by stronger support at $2.160.
A break below $2.160 could extend the decline toward $2.120 support. The next major support zone is located near $2.080.
Technical indicators show mixed signals for XRP’s near-term direction. The hourly MACD is gaining pace in bearish territory, while the RSI has dropped below the 50 level.
The cryptocurrency’s outlook remains tied to Bitcoin’s performance. Bitcoin needs to hold above $105,000 to prevent further market-wide declines.
If Bitcoin fails to maintain this level, XRP could retest the psychological $2.00 support level. The high correlation between the two cryptocurrencies makes Bitcoin’s price action crucial for XRP’s recovery prospects.
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