XRP, once poised to break a new all-time high, has recently hit a two-month low amidst prevailing bearish market conditions, resulting in significant liquidations among XRP holders.
This sudden downturn has led to substantial losses for traders, who are now navigating a highly volatile market environment.
Traders of XRP are grappling with substantial losses, with the altcoin's price slipping below $2, triggering a surge in long liquidations to $64 million in a single day. This uptick in liquidations underscores the mounting fear and uncertainty prevailing in the market.
The surge in liquidations could potentially impact the future backing XRP receives from the Futures market as numerous bullish traders were compelled to close positions, potentially influencing market sentiment going forward. The price dynamics and intense sell-offs have exerted additional pressure on XRP's road to recovery.
Riding on the wave of panic selling, realized profits from XRP holders skyrocketed to $1.5 billion as investors scrambled to secure gains post the sharp price decline, fearing further losses if XRP struggles to rebound. This profit-taking frenzy has further intensified the downward pressure on XRP, exacerbating the ambiguity surrounding its short-term price direction.
The escalation in profit-taking activity has slowed down XRP's recovery process as some investors opt for stable assets. However, this behavior also signals a cautious optimism as traders may hold off re-entering the market until signs of stabilization materialize. This interplay will be pivotal in determining XRP's future trajectory.
With XRP experiencing a 17% drop in the last 24 hours, currently trading at $2.38, the most significant blow was dealt during an intra-day low as the price plummeted by 38% to $1.77. This drastic decline underscores the substantial market volatility, leaving investors uncertain about the coin's immediate future.
Presently, XRP is teetering above the critical support level of $2.18 while encountering resistance at $2.73. This price range historically serves as a consolidation zone for the altcoin, implying that XRP might find itself range-bound for a while. A breakthrough from either support or resistance levels will be a critical determinant.
Should XRP manage to reclaim $2.73 as support, it could potentially ascend towards $2.95, signaling a possible shift away from the current bearish sentiment and opening doors for a recovery.