XRP price has declined below the $2.280 zone, currently trading under $2.270 and the 100-hourly Simple Moving Average
A key bearish trend line has formed with resistance at $2.270 on the hourly chart
The crypto market saw $657 million in liquidations in 24 hours, with XRP dropping 6.49%
XRP’s Open Interest dropped by $140 million in 17 hours as overleveraged positions were eliminated
The price revisited a key support level at $2.139, which could provide stability and potentially lead to a bottom formation
XRP has entered a period of price decline, falling below several key support levels as the broader cryptocurrency market experiences significant selling pressure. The digital asset, which had been showing signs of consolidation, has now dipped further as traders assess whether a deeper correction is underway.
The price action shows XRP failing to maintain momentum above the $2.280 zone. This drop mirrors similar movements in other major cryptocurrencies like Bitcoin and Ethereum, which have also experienced price decreases.
Technical indicators reveal that XRP is now trading below $2.270 and the 100-hourly Simple Moving Average, suggesting bearish sentiment in the short term. A key bearish trend line has formed with resistance at $2.270 on the hourly chart of the XRP/USD pair.
The market recorded a low of $2.132 before some consolidation began. There was a minor recovery above the $2.220 level, clearing the 23.6% Fibonacci retracement level of the downward wave from the $2.3540 swing high to the $2.2132 low.
Looking at the upside potential, XRP may face resistance near the $2.2440 level, which is close to the 50% Fibonacci retracement level of the recent downward movement. The first major resistance sits near the $2.270 mark.
Market Liquidations Impact XRP
The broader cryptocurrency market has experienced substantial liquidations totaling $657 million in the past 24 hours. Bitcoin dropped 3.89%, Ethereum fell 4.20%, and XRP declined by 6.49%.
This market-wide correction has had a direct impact on XRP’s trading metrics. The Open Interest for XRP has decreased by $140 million in just 17 hours, according to data from VeloData. This flush in Open Interest shows that overleveraged positions have been removed from the market.
The 7% price drop in a 12-hour period resulted in approximately $23 million in XRP long liquidations. This sudden decline ended an 18-day period of range tightening for XRP, which had been creating lower highs and lower lows.
Technical analysis reveals the formation of a falling wedge pattern when connecting trend lines with swing points. While falling wedges typically offer bullish breakout opportunities, the recent crash has moved in the opposite direction, largely due to Bitcoin’s price action.
XRP’s price has revisited a key support level at $2.139. This level previously saw the highest traded volume on May 4, which led to an 18% rally. A retest of this level could provide stable support and potentially lead to a bottom formation if selling pressure is absorbed in this area.
Price Outlook and Key Levels
The immediate outlook for XRP appears to be dependent on Bitcoin’s price movement. From a technical standpoint, bulls may have an advantage at current levels, but Bitcoin’s bearish outlook could continue to exert downward pressure on XRP due to their high correlation.
If XRP fails to clear the $2.270 resistance zone, another decline may begin. Initial support can be found near the $2.180 level, with the next major support sitting at $2.160.
A downside break below $2.160 could send the price toward the $2.120 support level. Should bearish momentum continue, the next major support area would be around $2.080.
On the resistance side, if XRP manages to break above $2.270, it might target the $2.30 level. Clearing this resistance could push the price toward $2.320 or possibly $2.350 in the near term. The next major hurdle for bulls would be at $2.420.
The most recent price action shows XRP revisiting the key support level at $2.139. Market participants are now watching for signs of stabilization at this level, which could determine the next directional move for the cryptocurrency.
XRP’s future price direction will likely be influenced by Bitcoin’s performance. If Bitcoin recovers, XRP may form a bottom at current levels. However, if Bitcoin fails to hold above $105,000, XRP could test the $2 psychological level.
This articles is written by : Nermeen Nabil Khear Abdelmalak
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