XRP crypto is at a crossroads, with prices near the $2.10 level trading down 13.31 percent in the past 24 hours.
While the correction is welcome, the market still appears to be in for heightened volatility over the next few days. Recent developments show a lot of whale activity and potential short liquidations.
Key Support and Resistance Levels in Focus
The price correction of XRP is now in focus, providing strong support levels. As the token has bounced back from this level before, the $2.17 support has been critical.
Experts note that if $2.17 isn’t held, and this breaks below that level, then $2.09 will become the next support level to test.
Prices could fall below the $2.00 mark, and below $2.09, if this triggers more caution from traders.
On the upside, resistance at $2.50 and $2.62 are crucial to watch. The $2.50 level, revised from $2.52, is a key hurdle for XRP to regain bullish momentum.
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Analysts state that a breakout above $2.62 would signal the completion of the ongoing correction and could ignite further buying activity.
Whale Accumulation Strengthens Bullish Sentiment
Whales are also buying more XRP, with 110 million more XRP crypto bought in the past 24 hours than the 77 million that large investors were active in ridding.
This accumulation helps further buoy market participant optimism that some in the market are taking advantage of the current price pullback.
Such large-scale purchases often influence market sentiment and add buying pressure, providing a potential cushion against further declines.
However, traders remain cautious as XRP must hold above critical support levels to sustain bullish momentum.
Short Liquidations Could Amplify Volatility
XRP crypto’s potential breakout above $2.62 has market implications. If prices cross above this resistance, approximately $20.5 million would be liquidated on short and this would probably further increase volatility.
Short liquidations occur when leveraged traders betting on price declines are forced to buy back assets to cover their positions, potentially driving prices higher.
Market observers note that these liquidations could serve as a catalyst for an accelerated move upward.
However, for this scenario to materialize, XRP crypto needs to establish sustained momentum above $2.50 and breach $2.62 convincingly.
Technical Indicators Reflect Mixed Signals
XRP outlook is mixed using technical indicators. The Relative Strength Index (RSI) on the daily timeframe has fallen below 50 indicating a neutral zone and showing some indication of a downward slope, indicating weakening momentum.
MACD histogram backs that out by showing a bearish crossover, meaning less buying pressure.
Meanwhile, the EMA (9, 26) crossover still witnesses wider bullish momentum, however, the price is not trading above the shorter EMA (9) which confirms the waning upward pressure.
Short-term analysts believe that XRP crypto will need to regain strength if it is to remain above $2.12.
Market Overview and Current Performance
As of press time, XRP trades at $2.10 with a 24-hour trading volume of $20.87 billion. This marks an 8.92% decline over the past week.
XRP despite this correction, still holds a market cap of $120.1 billion while with the circulation supply of 57 billion tokens, it is up.
Market participants continue to watch whales, liquidation risks, and potential support re-tests at $2.17 and $2.09 as XRP closes in on the critical resistance levels.
