thecryptobasic.com
$XRP is facing fresh selling pressure, with its price dropping close to the $1 psychological level and sparking a long liquidation frenzy.
$XRP has continued to slide lower in the past 24 hours. It fell deeper than Bitcoin and other large-cap altcoins during this period, except for Ethereum.
The asset is down 4%, only lower than Ether’s 5.4% in the top 10 cryptocurrencies by market cap. $XRP slumped to a low of $1.008 before buyers stepped in to spark a rebound to $1.036. Now, bulls are fighting to keep the $1 psychological price mark, as the dip is the closest $XRP has come to breaking below this level.
$XRP Correction Spikes Long Liquidation
As expected, leveraged long positions suffered severe losses. Amid the 4% drop, $43.18 million worth of $XRP bull bets were liquidated from the market. This accounted for 97% of the total $XRP positions forced to exit the market in the past 24 hours.
The total figure is $44.3 million, with $XRP short positions accounting for just $1.13 million.
Notably, this trend temporarily changed in the past 4 hours, as shorts dominated $XRP liquidations. Out of the $398,100 leveraged positions wiped out, $325,470 were shorts, and just $72,620 belonged to longs. This change aligned with the period where $XRP rebounded from the intraday low to its current price, wrecking late shorts.
Meanwhile, in the past hour, the market has returned to hunting long positions as they top the liquidation chart again. Specifically, $56,510 in long liquidations of the total $56,530 tells the whole story.
The $XRP liquidation is just a fraction of the total positions wiped out from the broader crypto market. Over the past 24 hours, $1.09 billion worth of positions have been forcefully closed, with $846 million being long positions and $244 million short positions.
$XRP Dip Buying Efforts
Amid the dip, market users appear to be accumulating. The Coinglass $XRP spot flows show that outflows have surpassed inflows to exchanges, indicating withdrawals from platforms where $XRP is easily sold to third-party and self-custody wallets.
Inflows stood at $159.9 million and outflows at $167.8 million. This means that a net of $7.85 million left crypto exchanges in the past 24 hours, culminating in about 7.62 million $XRP tokens at the current market price.
Nonetheless, the dip buying is not supported by futures enthusiasm. The growing liquidation has forced a cautious stance among derivative traders, with open interest dropping 8.7% to $2.3 billion. Futures flows also reflect this trend, with outflows surpassing inflows by $44 million in the past 24 hours.
Key Supports as $1 Grip Is Loosening
With bears consistently testing the $1 support, their persistence could pay off, especially if the current market conditions endure. Per the UTXO Realized Price Distribution (URPD), $XRP recently broke the $1.06 support, where over 830 million $XRP changed hands.
For the uninitiated, the URPD metric measures the amount of an asset’s supply last moved at a particular price. The higher the volume moved, the more significant a level becomes, offering either support or resistance, depending on the price direction.
According to the URPD, the next core support level is $0.80, where wallets transacted 923 million $XRP. After this is the $0.62 level, with 1.16 billion $XRP moved there. A deeper correction could take $XRP to $0.51, where 1.06 billion $XRP changed hands.
