- XRP at $2.47, down 3.97%, with $8.17M in long liquidations signaling market risk.
- Support holds at $2.48 for XRP, but MACD and RSI indicate prolonged bearish momentum.
- XRP faces pressure as long liquidations dominate, with key levels at $2.48 and $2.60.
Market forces have recently intensified XRP sales thereby causing its value to decrease. The XRP market showed a decline of 3.97% during the last 24 hours to reach a press time value of $2.4726. The market fall has created uncertainty about future support protection by bulls and their ability to resist downward price movement.
Price Action Analysis: Can Bulls Hold the Line?
XRP’s price ascended and peaked close to $3.30 before undergoing a downtrend. These were evident by the asset receiving support around $2.48 multiple times, indicating a strong appetite for buying at that level. Continuous unsuccessful attempts to surpass the $2.60 resistance demonstrate sustained selling activity in the market.
XRP holds its trading price above $2.48 support yet analysts expect the market to weaken if this support level breaks. The analysis of daily charts indicates that XRP may continue declining towards the price area between $2.20 and $1.70. However, If investors can succeed in pushing the price above $2.60 then $3.30 becomes their next potential target.
Related: XRP’s Ascending Triangle Breakout: Caution as March Nears
What Do RSI and MACD Reveal?
The Relative Strength Index (RSI) indicator shows 42.38 at its current reading point. The current momentum signals a bearish trend but the market condition has not reached oversold status. The market could present buying opportunities when RSI reaches below 30.
The Moving Average Convergence Divergence (MACD) shows a pessimistic market trend. The MACD line currently sits below the signal line, and the histogram displays negative values. Price alignment, together with falling volume, typically results in additional market declines. Bullish trading momentum may start to return when the MACD line rises above its signal line.
Source: TradingView
How Are Liquidations Impacting XRP?
Market sentiments can be analyzed through an examination of liquidation data. The total XRP market liquidations exceeded $8.84 million on February 23. Total long liquidations exceeded short liquidations as they reached $8.17 million while short liquidations remained at $673.03K.
The highest level of long liquidations was recorded at $5.31 million on Bybit while Binance posted $1.44 million in liquidations. Traders bet heavily on a price recovery, which did not occur leading to disproportionate long and short liquidations at $8.17 million compared to $673.03K. The recent XRP price drop resulted directly from the forced sales of holders who had to sell their assets.
Source: Coinglass
Final Verdict: A Critical Moment for XRP
XRP stands at a pivotal point. A decline beyond $2.48 support needs defensive measures from bulls to stop the downward trend. If XRP manages to surpass $2.60, buyers’ momentum will strengthen. The bearish indicators from RSI, MACD, and liquidation data create a cautious perspective for short-term price movement.
Price stability above $2.48 could possibly drive increased buying activity, which might push XRP prices upward. The movement of XRP next is likely to be influential, so traders need to observe these essential support and resistance levels.
