- At press time, XRP’s 200 EMA acted as a crucial support level. $32.41 million in short positions will be liquidated if XRP reaches the $0.587 level.
Amid ongoing selling pressure, top assets continue to fall, including Bitcoin [BTC], Ethereum [ETH], Solana [SOL], and Ripple [XRP].
However, XRP gained significant attention from the crypto community as it experienced a breakdown of the crucial $0.556 support level.
Crucial support breakdown
Following this breakout, traders have liquidated over $2.71 million in long and short positions. Of this, $2.41 million of liquidation came from long positions, and $298.4k of liquidation came from short positions.
Apart from this breakdown, Ripple has unlocked 1.8 billion XRP tokens worth $981 million in the last few days, according to blockchain transaction tracker Whale Alert.
This token unlock has increased the total circulating supply and made XRP more bearish.
Despite this bearish outlook, whales have moved a notable 75.36 million XRP tokens worth $40.2 million from Binance [BNB] to an unknown wallet.
XRP price analysis
As of now, XRP is trading near $0.54 and has experienced a price decline of over 4.5% in the last 24 hours. Meanwhile, trading volume dropped by 35%, during the same period, indicating fear in the market.
Additionally, XRP’s Open Interest (OI) has fallen by 7% in the last 24 hours, suggesting lower interest from investors and traders during this market downturn.
Technical analysis and upcoming levels
According to expert technical analysis, XRP looked bearish as it gave a breakdown of a crucial support level of $0.556.
Despite this, XRP was finding support from the 200 Exponential Moving Average (EMA), a positive sign for XRP traders and investors.
Source: TradingView
However, if XRP fails to hold 200 EMA on a daily time frame amidst the selling pressure, there is a high chance that it could fall another 10% and may reach the $0.48 level for its next support.
Major liquidation level
At press time, the major liquidation levels are at $0.526 on the lower side and $0.587 on the upper side, according to an on-chain analytic firm Coinglass.
Source: Coinglass
If market sentiment remains unchanged and XRP falls below the $0.526 level, nearly $7.09 million of long positions will be liquidated.
Conversely, if market sentiment changes and XRP soars to $0.587, nearly $32.41 million of short position will be liquidated.
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