Disclaimer: The opinions expressed by our writers are their own and do not represent the views of U.Today. The financial and market information provided on U.Today is intended for informational purposes only. U.Today is not liable for any financial losses incurred while trading cryptocurrencies. Conduct your own research by contacting financial experts before making any investment decisions. We believe that all content is accurate as of the date of publication, but certain offers mentioned may no longer be available.
XRP is reacting to general market trends as its price faces a bearish reset, leading to severe liquidation in the last hour. Per data from CoinGlass, within this period, there has been a liquidation imbalance of 4,628%.
XRP declines after brief surge above $3
Notably, traders betting long on XRP saw $159,820 wiped out within 60 minutes as the price of XRP took a plunge in value. These investors were anticipating further climbs in the price of XRP, given the bullish sentiment on the general cryptocurrency market.
XRP, after successfully breaching the elusive $3 level, suffered volatility, likely from profit-taking, and did not find stability at that level. After peaking at $3.02, the asset plunged to a low of $2.81 as investors and market participants look determined to make gains.
As of press time, the XRP price was changing hands at $2.83, which represents a 3.53% decline in the last 24 hours. The trading volume remains in the green zone by 20.62% at $11.3 billion. However, the asset’s Relative Strength Index (RSI) at 83.56 is already signaling overbought.
With the liquidation, short position traders also recorded losses in the last hour. A total of $3,380 was recorded against those betting on a bear market for XRP.
Profit-Taking and ETF Speculation Fuel XRP’s Volatility
Analysis of the XRP ecosystem suggests that most traders went for profit-taking ahead of a possible XRP exchange-traded fund launch by ProShares. Although official confirmation is still not in, John Deaton, pro-XRP lawyer, claims it could happen on July 18.
The initial surge in price supported the asset, flipping $3, and once breached, some investors went for profit, leading to the liquidation witnessed.
Curiously, after XRP hit the $3 level, an ecosystem whale engaged in a massive transfer of over 497.5 million XRP between two unknown wallets. The movement remains on the radar of market participants as they monitor its impact on the market.
U.Today Editorial Team
Vladislav Sopov