Liquidation-Driven Price Action
In the latest market turbulence, XRP’s price fell sharply from $3.34 to $3.10, representing a 7.2% drop within 24 hours. This decline coincided with broad crypto liquidations exceeding $1 billion, driven by higher-than-expected U.S. PPI data. Institutional and retail participants alike unwound leveraged positions, resulting in significant downward pressure on XRP.
Volume and Support Testing
Trading volume peaked at 436.98 million XRP during the midday capitulation event, marking one of the largest single-hour prints of the quarter. The move pushed XRP to test critical support at $3.05–$3.09 on repeated retests. Despite the heavy selling, late-session buying returned price to $3.10, indicating exhaustion of immediate downside momentum and potential accumulation interest around established support.
Technical Analysis and Resistance Levels
Price action revealed a primary resistance zone at $3.13, with a secondary level at $3.20. On-chain data showed declining sell-side pressure as volume tapered off toward the close. Analysts note that a sustained rebound above $3.13 would suggest short-covering and potential trend reversal. Conversely, a failure to hold $3.05 could expose deeper corrective targets near $2.95.
Market Sentiment and Outlook
Sentiment indicators such as the short-term holder spent output profit ratio (SOPR) suggest that few investors took profits at lower levels, hinting at buyers stepping in earlier than expected. Narrative-driven sentiment tools also flagged a reduction in negative social signals as the sharpest declines passed, aligning with observed stabilization in price action.
Strategic Considerations
Traders should monitor derivative markets for shifts in funding rates, as elevated funding can signal renewed market stress. Volume profile analysis indicates key support clusters around $3.00–$3.05 and resistance at $3.15–$3.20. A break below the $3.00 psychological level could open the door to deeper retracements, while a sustained break above $3.20 may confirm renewed bullish momentum for XRP.
Conclusion
The recent liquidation event underscored crypto’s growing correlation with macroeconomic data. While XRP’s drop tested critical levels, the late-session recovery suggests potential stabilization. Market participants will closely watch U.S. economic releases and derivative flows for cues on whether support zones will hold or further selling is ahead.
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