On September 21, 2024, XRP, the world's seventh-largest cryptocurrency by market cap, experienced notable price fluctuations, resulting in the liquidation of $1.4 million in positions.
XRP's False Breakout
Amid its consolidation between $0.559 and $0.598, XRP experienced a price jump of over 4.5% at 22:00, leading to a false breakout and liquidation of $1.14 million worth of short positions. However, as XRP closed its one-hour candle above the consolidation zone, traders built large long positions, anticipating the rally to continue. The price of XRP then reversed sharply, resulting in the liquidation of $241,700 in long positions.
Bearish Sentiment Among Traders
According to Coinglass, the current XRP long/short ratio 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.
Current Price Moves and Technical Analysis
At press time, XRP is trading near $0.597, having experienced a price surge of over 1.75% in the last 24 hours. During the same period, trading volume dropped by 24%, indicating lower participation from traders and investors. Expert technical analysis suggests XRP is in an uptrend and consolidating in a tight range. If it breaks out and closes above this zone, the price could potentially rise to $0.65. If it fails to close above that zone, it may continue to trade within the current range. Currently, XRP is trading above the 200 Exponential Moving Average (EMA) on a daily time frame, signaling an uptrend.
XRP has experienced significant price fluctuations leading to substantial position liquidations. Future price movements will depend on the asset's ability to break out of the consolidation zone and secure a close above it.
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