- XRP fell below $2.92 after a massive liquidation event wiped out over 138,000 traders due to excessive long positions.
- Despite a brief recovery, technical indicators show bearish signals, and the price risks dropping to the $2.80 support level.
XRP is facing renewed pressure as the cryptocurrency rally encounters its first major correction in August. A sharp sell-off caused XRP’s Price to fall by nearly 3%, breaching critical support levels before attempting a brief recovery.
According to data from CoinGlass, there was a massive 7,676% imbalance between long and short positions on XRP. This overwhelming skew triggered widespread liquidations. In the last 24 hours alone, 138,143 traders were liquidated, with total losses hitting $358 million. Other major cryptocurrencies were also affected, with Bitcoin and Ethereum long positions seeing liquidations of $41 million and $72 million, respectively.
XRP finds temporary support at $2.80
The XRP price dropped from $3.04 to $2.97, before finding support near the 50-day Exponential Moving Average (EMA) at $2.80. This level also aligns with the Fibonacci 50% retracement level at $2.78, providing a temporary bounce of nearly 11% on Monday.
However, that rebound was short-lived. By Tuesday, XRP had fallen 4% and is now trading below $2.92 as of Wednesday. If this downtrend continues, It could soon retest the critical support zone around $2.80.
Indicators show growing bearish pressure
Technical indicators are also flashing warning signs. The Relative Strength Index (RSI) has dropped below the neutral 50 mark, signaling weakening bullish pressure. Meanwhile, the Moving Average Convergence Divergence (MACD) shows a bearish crossover, reinforcing the pessimistic short-term outlook for XRP.
XRP investors face risk from high leverage
This recent price drop highlights the high-risk nature of cryptocurrency trading—especially when using leverage. The heavy concentration of long positions left XRP vulnerable to rapid liquidations, amplifying price swings.
For investors, this event is a strong reminder of crypto’s volatility. While XRP has shown resilience in past rallies, the current market conditions suggest caution. Proper risk management remains crucial in navigating such unpredictable price movements.
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