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XRP experienced a dramatic 10% price drop in just two seconds due to a massive sell order on the spot market. Such a sharp decline raises questions about the asset's market dynamics and liquidity, especially in a period of heightened volatility.
The XRP price chart highlights the coin’s explosive rally over the past week, reaching a peak near $1.30 before retracing to around $1.07. The sell order that triggered the drop underscores the market's sensitivity to large transactions. High volume and thin order books can magnify the impact of significant trades, leading to abrupt price swings like this.
From a technical perspective, XRP remains in overbought territory, as indicated by the RSI hovering above 70. This suggests that further corrections could be on the horizon unless fresh buying pressure emerges to support the current price levels. However, the asset is still trading well above its major moving averages, including the 50, 100 and 200 EMAs, signaling that the broader uptrend remains intact.
On the upside, XRP could find strong resistance near the $1.30-$1.35 range, where selling pressure has historically intensified. A successful break above this zone could open the door to further growth, potentially pushing the coin toward $1.50 or higher.
Tomiwabold OlajideOn the downside, the $0.95-$1.00 range now serves as critical support. A failure to hold this level might lead to a deeper correction, with $0.75 emerging as the next key support area.
The incident highlights the risks and opportunities of trading in volatile markets like XRP. While the sudden drop was unsettling, the rapid recovery reflects strong market interest and potential upside for the asset. Investors should closely monitor liquidity dynamics and upcoming market catalysts, as they could play a crucial role in XRP's price trajectory in the weeks ahead.
Tomiwabold Olajide
Dan Burgin
U.Today Editorial Team
Vladislav Sopov