XRP Price Corrects: 19% Drop, Is This a Buying Opportunity?
XRP experienced a notable price correction, dropping 19% from its recent eight-year high. This move coincided with a broader downturn in the crypto market, which saw a 3% decrease in the last 24 hours, bringing the total market capitalization to $3.79 trillion.
XRP Price Drop and Liquidations
The price of XRP (XRP) fell as much as 19%, hitting an intraday low of $2.95 after reaching a multiyear high of $3.66. This sharp decline led to significant liquidations.
- Liquidation Volume: $113 million in XRP liquidations, with $106.8 million from long positions.
- Total Crypto Liquidations: The broader crypto market saw $968 million in total liquidations over the past 24 hours.
- Ether (ETH) Liquidations: Ether liquidations topped $195 million, including $168 million in long positions.
Liquidations occur when leveraged positions are automatically closed due to price volatility or insufficient margin, which amplifies market swings.
Market Bottom Signal?
Some experts believe that nearly $1 billion in liquidations may indicate a market bottom.
According to pseudonymous analyst CryptoData, the recent volatility might compensate for not reaching the $1 billion liquidation mark, which historically precedes a local bottom within 1-3 days.
Technical Analysis and Market Sentiment
The price correction can be attributed to overbought conditions, as indicated by the Relative Strength Index (RSI). After its surge to $3.66, XRP’s RSI signaled that it was overbought on multiple time frames.
- Current RSI: The weekly RSI has dropped from 71 to 61. The daily RSI hovers around a neutral 56.
- Support Level: The $3 level, which is also the 100-period simple moving average (SMA), is now a key support.
- Potential Decline: Failure to hold this support could lead to a further decline towards the 200-period SMA at $2.60.
Analysts suggest that these lower levels could provide buying opportunities before the uptrend resumes.
Analyst Perspectives
Market analyst Egrag Crypto noted that despite the significant selling volume, buyers have stepped in aggressively.
“Don't let fear take over now! Stay strong and hold your position.”
Another analyst, XRPunkie, views the current pullback as a healthy correction, typical in crypto markets, suggesting it's a pause before prices move higher. He maintains a target of $10 to $15.
“Sit back, chill and relax. Let it bottom out, and we should be on our way to much higher prices real soon. $10-$15 still in play.”
Crypto analyst Dom suggests XRP could reach between $7-$10, depending on its market dominance and overall market movements.
Bitpanda deputy CEO Lukas Enzersdorfer-Konrad believes XRP is still positioned to surpass its 2018 all-time high, citing strong liquidity and increasing confidence in altcoins.
Disclaimer: This is not investment advice. Trading and investment decisions involve risk. Conduct your own research before making any decisions.
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