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$XRP, once on the verge of reaching a new all-time high, has recently charted a two-month low. This shift comes amid widespread bearish market conditions, leading to massive liquidations among $XRP holders.
The sudden downturn caused significant losses, and traders are now facing a volatile market environment.
$XRP Traders Face Massive Loss
$XRP traders have faced their largest liquidations in six months as the altcoin price slipped below $2. In a single day, long liquidations surged to $64 million, highlighting the rapid exit of traders. This spike in liquidations reflects growing fear and uncertainty in the market.
As a result, the large number of liquidations could hinder the future support $XRP receives from the Futures market. Many bullish traders were forced to close positions, which could affect market sentiment moving forward. The price dynamics and heavy sell-offs have added further pressure on $XRP’s recovery.
Realized profits from $XRP holders surged to $1.5 billion as panic selling intensified. Investors moved to secure profits after the sharp price decline, fearing additional losses should $XRP fail to recover. The large profit-taking event further exacerbated the downward pressure on $XRP, reinforcing the uncertainty around its near-term price trajectory.
Increased profit-taking activity has slowed the recovery process for $XRP, especially with some investors choosing to move to stable assets. However, this behavior also reflects cautious optimism, as traders may wait for signs of stabilization before re-entering the market. This dynamic will play a key role in $XRP’s next move.
$XRP Price Prediction: Consolidation Next?
$XRP has been down 17% over the past 24 hours, trading at $2.38. The biggest damage occurred during the intra-day low when the price fell 38% to hit $1.77. This sharp drop indicates significant market volatility, with investors unsure about the coin’s near-term future.
At present, $XRP is hovering above the critical support of $2.18 while facing resistance at $2.73. This range has historically been a consolidation zone for the altcoin, suggesting that $XRP could remain trapped within this price band for some time. A breakout from either of these levels will be crucial.
If $XRP can reclaim $2.73 as support, it would have a chance to rise toward $2.95. Successfully breaching this resistance would invalidate the current bearish outlook, paving the way for potential recovery.