XRP Liquidation Spree Tops $65M With $10B in Trading Volume — Correction May Accelerate

Key Takeaways

• XRP plunged from $2.15 to $1.77 as the cryptos reacted negatively to Trump’s escalating global trade war.
• Over $65 million in XRP positions were liquidated, contributing to the $1.39 billion wiped from the crypto market.
• Despite rising trading volume,  XRP has fallen below its 200-day EMA for the first time since November 2024.
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The escalating global trade war led by Donald Trump continues to weigh heavily on crypto prices, and XRP is no exception.

As of this writing, the price of XRP—the token that powers the decentralized XRP Ledger—has dropped by 15% in the past 24 hours.

This decline aligns with CCN’s forecast from last week, which suggested that the altcoin could slide below $2. But what does this mean for traders, and what could be next for the token?

In this analysis, we look at the broader implications and assess the short-term outlook for XRP.

XRP Longs Crushed

According to Coinglass, XRP’s price crash from $2.15 on Saturday to $1.77 led to liquidations worth millions of dollars. For context, liquidation occurs when a trader does not have enough margin to keep a position open.

As a result, an exchange forcefully closes the position to prevent further losses. Of the $1.39 billion liquidated across the crypto market in the past 24 hours, XRP traders accounted for over $65 million of the total.

Data from the crypto derivatives platform reveals that long positions (buyers) were hit hardest by the wipeout. Shorts (sellers), on the other hand, only accounted for a small percentage of the liquidations.

Hike in Volume Is Bearish

On the spot side, Santiment data shows a hike in XRP’s trading volume. Crypto trading volume refers to the total number of coins or tokens exchanged between buyers and sellers within a specified time frame.

The volume also acts as a key indicator of market activity and liquidity. It can tell the potential direction in which the XRP price might move.

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From a trading perspective, rising volume alongside increasing price is considered a bullish sign, as it confirms the strength of the upward movement.

However, in this case, although the trading volume is close to $10 billion, XRP’s price has been declining.

This suggests an increase in selling pressure. If the current trend continues, XRP’s market value could face further downward pressure.

XRP Price Forecast: Lower Lows

On the daily chart, XRP’s price had previously formed a double-bottom pattern, indicating that the token might experience a notable rebound.

However, earlier today, the token dropped below the psychological $2 support, invalidating the bias. Furthermore, for the first time since November 2024, XRP’s price has slid under the 200-day Exponential Moving Average (EMA).

The 200 EMA (blue) acts as long-term support. For months, the indicator remained below XRP’s price, helping it breach key resistance levels and trade above $3. However, the recent change in position suggests that the altcoin could be in for a prolonged downtrend.

The Relative Strength Index (RSI) reading, which has continued to fall, also supports this trend. If this trend fails to change, XRP’s price might fall below $1.52 and decline to $1.09.

Failure to halt selling pressure might make matters worse, as the market value might drop toward $0.38. Alternatively, if XRP finds its way above the 200 EMA again, this forecast might not come to pass.

In that case, XRP’s price might jump to $2.23, near the 0.618 golden pocked ratio. Should the bull cycle return in full force, the market value could climb above $3 again.