XRP Drops 7% Amid $1 Billion Market Liquidations
XRP experienced a significant decline in the past 24 hours, hitting its lowest levels in over a week amid massive liquidations across the market. This sell-off resulted in over $1 billion in total liquidations and record intraday selling volume, testing critical support at $3.05. Late-session buying indicated potential accumulation by large holders as selling pressure subsided.
News Background
- Market-wide liquidations surpassed $1 billion, affecting major cryptocurrencies.
- XRP's drop coincided with a high-volume capitulation event, reaching 436.98 million units in one hour.
- Ripple’s CTO confirmed the XRP Ledger's readiness for global financial infrastructure use, providing fundamental support.
- Widespread declines in the crypto market correlated with profit-taking in U.S. equities, impacting risk sentiment.
Price Action Summary
- XRP fell from $3.34 to $3.10 between Aug. 14 03:00 and Aug. 15 02:00 (-7.19%).
- The trading range was $3.34 to $3.05, reflecting 8.69% volatility.
- The largest drop occurred at 12:00, with the price declining from $3.22 to $3.09 on heavy volume.
- Post-decline, XRP traded within a narrow band of $3.05–$3.13, indicating reduced selling momentum.
- Late-session trading saw a recovery from $3.09 to $3.10, moving above immediate resistance.
Technical Analysis
- Support established between $3.05–$3.09 through multiple retests during high-volume selling.
- Resistance is now at $3.13, with secondary resistance at $3.20.
- Declining volume post-midday spike suggests liquidation exhaustion.
- Two notable volume surges in the final hour (4.53M and 3.76M) indicate institutional interest at support levels.
- A recovery above $3.10 under low liquidity could signal early re-accumulation.
What Traders Are Watching
- Follow-through buying above $3.13 to confirm a short-term reversal.
- Large-holder wallet activity for signs of renewed accumulation.
- Stability of $3.05 during upcoming market volatility.
- Funding rate shifts in XRP derivatives markets that may indicate leverage re-entry.
- Correlation with equity markets as Fed rate cut expectations influence risk sentiment.