Cryptocurrency XRP's price dropped 1.74% in the last 24 hours, reaching the critical support level of $0.595. This level was previously broken during an upward trend but is now under threat again. If XRP fails to maintain this level, the likelihood of a significant drop in the near future may increase.
XRP's Struggle at Support Level Continues
XRP's 1.74% drop in the last 24 hours led to a retest of the $0.595 level. This tested level is crucial to maintaining the upward momentum brought by the recent rally. If XRP cannot hold this level, a sharp drop to the next support point at $0.555 may occur. This situation could rapidly reverse all gains made in recent weeks.
XRP's price movements continue to consolidate in a narrowing range between the $0.595 support level and the $0.6487 resistance level. This narrowing indicates that a significant market movement may occur soon. A possible crossover in the stochastic indicator could signal this major movement.
According to market data, XRP's price is stuck in a narrow range, and the direction of the breakout is eagerly awaited. A drop below the $0.595 level could trigger a large wave of selling.
Effects of Liquidations on XRP
According to Coinglass data, there is an increase in the number of liquidations in the XRP market. These liquidations, especially observed in long positions, indicate increased volatility. The price being stuck in a narrow range and the struggle between long and short positions reflect the current complex structure of the market.
When examining the open interest (OI) weighted funding rate data, it is observed that the XRP market has experienced significant fluctuations since the beginning of July. Positive funding rates indicate that long-term investors tend to pay extra for their positions, which is dominant.
However, the recent decline in XRP's funding rates reveals that upward trends have weakened. If this trend continues, more downward pressure on prices may occur. XRP's near future depends on its ability to maintain the $0.595 level. If it finds strong support at this level, it is possible for the price to start a new upward trend.
