XRP has faced a noticeable decline in value, losing 11.6% in the past 24 hours. This has prompted an analysis of key support levels and causes for liquidation.
XRP's Decline and Support Level
Currently, XRP is trading at $3.13 after hitting a historical peak of $3.65 in early July. This sharp drop has been driven by active profit-taking by traders after a rise of over 68%.
Market analyst EGRAG CRYPTO notes that XRP must hold above $3.12 to avoid further downside.
XRP Liquidations Exceed $18 Billion
XRP has reached a critical liquidation level, exceeding $18 billion. This severe event has been a result of overheated speculation and thin liquidity. Earlier this week, sharp corrections in the crypto markets triggered over $735 million in liquidations, with XRP accounting for approximately $88.6 million in losses, second only to Ethereum.
In a brutal four-hour purge, more than $41 million in XRP long positions were liquidated, highlighting how quickly leveraged positions unravel in the face of sudden downside.
Conclusions and Future Prospects
The over $18 billion liquidation episode for XRP resulted from a combination of excessive leverage, scarce liquidity, and sudden regulatory changes. The future of XRP will depend on its ability to reclaim calmer conditions, with the $3.12 level being key for further movement.
The situation surrounding XRP demonstrates the volatility of crypto markets and the importance of support levels. The future of the cryptocurrency will hinge on its ability to hold around key levels.