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On September 21, 2024, $XRP, the world’s seventh-biggest cryptocurrency by market cap, experienced notable price fluctuations, resulting in the liquidation of $1.4 million in long and short positions. Over the past few days, $XRP had been in a consolidation zone between $0.559 and $0.598.
$XRP Experiences False Breakout
Amid this ongoing consolidation, at 22:00 sharp, $XRP experienced a price jump of over 4.5%, leading to a breakout from the consolidation and the liquidation of $1.14 million worth of short positions.
However, as $XRP closed its one-hour candle above the consolidation zone, traders built large positions on the long side, believing that the $XRP rally would continue. Later, however, the $XRP price reversed sharply, resulting in the liquidation of $241,700 worth of long positions.
Traders Bearish Sentiment
Coinglass’s $XRP long/short ratio currently stands at 0.90, indicating bearish market sentiment among traders. However, 52.5% of top traders hold short positions, while 47.5% hold long positions.
$XRP Current Price Momentum
At press time, $XRP is trading near $0.597 and has experienced a price surge of over 1.75% in the last 24 hours. During the same period, its trading volume dropped by 24%, indicating lower participation from traders and investors.
$XRP Technical Analysis and Upcoming Levels
According to expert technical analysis, $XRP is in an uptrend and consolidating in a very tight range. If it breaks out of the consolation zone and closes a daily candle above that zone, there is a strong possibility that the $XRP price could soar by 10% to reach the $0.65 level. On the other hand, if $XRP fails to close the daily candle above that zone, it will continue to struggle within the zone.
At present, $XRP is trading above the 200 Exponential Moving Average (EMA) on a daily time frame. If the asset’s price is above 200 EMA, it indicates that the asset is in an uptrend, and vice versa.