- To avoid the bearish pressure, XRP has to be closed above $3.12 or face a final panic-induced wick shake of weak hands.
- Increasing volume coupled with declining open interest show that traders are wary and uncertain in the current state of weak support levels of XRP.
- Longs comprise 40M in liquidation, as bulls were taken by surprise by a latest bearish movement on XRP.
XRP is at the point of a critical turn and the rate to monitor is the price level of $3.12. A respected market analyst, Egrag Crypto, reaffirmed that breaching this resistance line with a close above the line is highly significant in turning around the present bearish trend in the market.
Source: X
The due diligence, as articulated by Egrag, has resulted in an advanced degree of due diligence on the part of the XRP investors. In his opinion, failure by the token to break above $3.12 may bring another sharp market shakeout. He suggested that this potential candle can be rough to ruffle even buyers who only started growing confidence following the former price rally.
Also Read: XRP Reversal Incoming? Breakout Eyes Key Resistance at $3.65
XRP Volume Jumps, But Bulls Retreat
CoinGlass data highlighted that the XRP trading volume has also risen by 4.70% over the past 24 hours, up to 12.09 billion. This increased volume is a pointer to the movement of traders coming in greater numbers, but this does not necessarily imply power on the bullish end.
At the same time, the open interest in XRP went down by 3.97% to current levels at $7.42 billion dollars. A decrease in the open interest usually indicates that the reaction of the traders is to scale back a position or to take one off. The volume that is higher with lower open interest shows that the market players are cautious and undecided.
Source: Coinglass
Data on liquidation shows even more weakness of the market today. In the past 24 hours, long and short positions in token have been liquidated for a sum of $40.14 million. The longs alone were hitting an overwhelming $35.67 million, opposed to the shorts that were just $5.47 million.
Support Fades, Bears Eye $2.48
The other perspective was presented by analyst Ali, who looked at how the Ripple token accumulated historically. He mentioned that the $2.80 mark is a short-term support level; however, it is not very critical to support a long-term price. If the downward force continue, massive support does not even begin until below $2.48, a level that can also be targeted based on his data.
Source: X
A division in market perception has occurred, and savvy traders are closely monitoring this. The less experienced traders might need to brace themselves to deal with the effects of greater volatility. The next step by token may either be an upward or a downward move, which is likely to define its future direction in the near future.
Also Read: XRP Price Slips Below Support as Whales Dump 720 Million Tokens
