XRP's price recently fell to $2.15, leading to significant position liquidations. This article examines the reasons and consequences of this event.
Liquidations Due to Price Drop
On April 30, XRP's price dropped to $2.15, resulting in $13.9 million in long positions being liquidated within 24 hours. This was nearly a 1000% increase over short position liquidations ($1.49 million), indicating a strong long bias among traders.
Market Situation and XRP Recovery
Despite the drop, XRP managed to recover to a crucial psychological level of approximately $2.20. Some traders interpret this as a 'flush,' removing weak hands ahead of a possible reversal. However, there are concerns that another price decline could lead to additional liquidations.
Technical Analysis and Forecasts
From a technical standpoint, the asset is trading within a tight range, with $2.15 and $2.30 levels being critical to watch. Currently, most indicators reflect a neutral outlook. However, there appears to be a slight bullish bias according to MACD indicators, with short-term moving averages indicating buy territory.
The current situation with XRP raises serious discussions among traders. The $2.15 and $2.30 levels will be decisive for further direction assessment. Any fluctuations are expected to pose additional liquidation risks.
