According to on-chain analytics firm CryptoQuant, XRP reserves have dropped significantly by 167 million tokens in the past five weeks. However, this is a positive sign for XRP holders as fewer tokens are being deposited on exchanges for sale, reducing the likelihood of selling pressure.
XRP Technical Analysis and Upcoming Levels
According to expert technical analysis, XRP looks bearish as it is trading below the 200 exponential moving average (EMA) on the daily timeframe. Moreover, during the recent price decline, it broke the critical support at $0.546 and is currently trading below this level. However, XRP’s relative strength index (RSI) is in the oversold territory, suggesting that the price could recover.
Currently, XRP is facing resistance at the downtrend line and the $0.55 level. If it breaks out of these hurdles and closes on the daily chart above $0.56, there are high chances that XRP price could surge by 15% to $0.65.
Key Liquidation Levels
As of now, the main liquidation areas are around $0.519 below and $0.541 above as traders are overleveraged at these levels, according to data from Coinglass.
If market sentiment remains bearish and the XRP price drops to the $0.519 level, nearly $8.76 million worth of long positions will be liquidated. Conversely, if market sentiment changes and the price surges to the $0.541 level, approximately $6.56 million worth of short positions will be liquidated.
Current Price Performance
The price of XRP, along with major cryptocurrencies, has fallen significantly in recent days due to low market sentiment and heavy selling pressure from whales and institutions. However, the market now appears to be recovering, with top cryptocurrencies such as Bitcoin (BTC), Ethereum (ETH), and Solana (SOL) seeing price increases of more than 4.75%, 3.8%, and 4.5%, respectively.
At press time, XRP is trading near $0.538, with prices up more than 2.5% over the past 24 hours. Meanwhile, its trading volume has increased by 65% over the same period, indicating increased participation from cryptocurrency enthusiasts amid the market downturn.
