XRP’s price has dropped 4.8% in the last 24 hours, bringing it to $2.29. This mirrors a broader crypto market decline, with the total market cap shrinking by 6.5% to $3.35 trillion. Let’s break down the reasons behind today’s dip. 🚨 $XRP
1. Massive Long Liquidations 💥
In the past 24 hours, XRP’s derivatives market experienced over $12.92 million in long liquidations, compared to just $3.86 million in short liquidations. This disparity triggered a sell-off, intensifying downward pressure on the price.
Similar liquidation spikes led to a 23% XRP price drop in December. 🛑
2. Falling Funding Rates 📉
XRP’s funding rates dropped from 0.21% per week to -0.11% per week. A negative funding rate indicates an increased preference for short positions. Open interest also decreased by $300 million, signaling waning confidence in bullish bets.
This shows traders are growing cautious, further weakening demand for XRP.
3. Long-Term Holders Selling 🚪
Since hitting a local high of $2.50 on Jan. 4, XRP has fallen 10%. Data shows a spike in the Dormant Circulation Supply (356D) metric, with 208.3 million XRP (worth $467 million) moved by long-term holders.
This increase in circulating supply amplified sell pressure, driving prices lower. 💸
4. Key Support Levels in Danger 🛠️
XRP’s correction aligns with a descending parallel channel. Resistance at $2.45 remains unbroken, and failure to flip this into support could see prices retest the 50-day SMA at $2.15.
A break below this level could accelerate the decline toward $2.00. 📊
The RSI at 53 indicates a market in consolidation, leaving room for a move in either direction.
What’s Next for XRP? 🤔
Despite the current pullback, some analysts remain optimistic. Popular analyst Steph Is Crypto believes XRP could still break out of its bull flag formation and rally to $5.60
For now, all eyes are on whether XRP can hold the $2.15 level and reclaim $2.45 as support.
Bottom Line: XRP’s decline is driven by heavy liquidations, cautious sentiment, and long-term holders offloading. While a deeper correction is possible, breaking resistance at $2.45 could reignite the bullish case. Stay vigilant, traders! 🚀
#xrp #LongTermHolders #BullishRun
