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XRP’s rally, which came following the Ripple v. the Securities and Exchange Commission (SEC) lawsuit conclusion, appears to have waned. The asset is experiencing consistent volatility in the market, unable to stabilize above the $3 level. In the last hour, this dip has triggered a 9,628% liquidation imbalance for XRP traders.
XRP's RSI signals potential market recovery
As per CoinGlass data, long position traders recorded $194,570 in losses as XRP failed to sustain an upward climb. As such, investors who were betting on a bullish rise were stunned by the coin’s downward movement.
This shows that over-leveraged bulls were wiped out when XRP dropped to its lowest level of $2.77. The long squeeze suggests reduced selling pressure for the asset and might set it up for a possible rebound move.
Notably, the Relative Strength Index of XRP is in the oversold territory on the one-hour chart, signaling exhaustion. As of this writing, the XRP price was trading at $2.80, representing a 2.68% decrease over the last 24 hours. Trading volume is slightly in the green zone by 3.84% at $7.14 billion.
With the lawsuit no longer acting as a price catalyst, XRP’s next rise, occurring amid this oversold condition, would be driven by market forces. If the current trading volume supports its rise to $2.90, the coin could gather enough momentum to regain the $3 level.
XRP ETF speculation adds to bullish outlook
Meanwhile, bears also lost a mild $2,000 in the last hour as a result of the liquidation triggered by price fluctuations. However, as U.Today reported, XRP’s Bollinger Bands indicate that once the sell pressure is over, the coin could regain $3.08.
Another possible catalyst to watch is the anticipation of an exchange-traded fund (ETF) approval. Recently, Amplify Investments filed for an XRP ETF, adding to the numerous filings awaiting regulatory nod from the SEC.
Dan Burgin
Vladislav Sopov
U.Today Editorial Team