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XRP has seen its trading volume jump over 74% as the broader crypto market fell significantly in early Sunday trading.
The crypto market extended its weekend slide, with losses broadening across most digital assets and futures liquidations piling up.
Over $2.58 billion in positions were liquidated over 24 hours, according to CoinGlass data, as a weekend sell-off extended in the crypto market, with 414,491 traders affected. XRP saw more than $40 million in liquidation as its price fell.
Long positions accounted for the majority of liquidations, coming in at $2.27 billion, with shorts accounting for only $171 million. This imbalance points to traders being caught unawares, staying optimistic about a rebound after weeks of range-bound price action in the markets.
Thin weekend liquidity increased selling pressure as trading volumes declined, a setup that might boost volatility. XRP trading volume likewise fell, but has recovered early Sunday.
XRP's trading volume came in at $6.49 billion, a 74% increase in the last 24 hours, according to CoinMarketCap data.
XRP price drops
XRP fell for four straight days from Jan. 28 to hit a low of $1.5 on Jan. 31. The significance of this low is that it occurs near XRP's realized price.
XRP's realized price currently sits at $1.48, according to Glassnode, with the price hinting at a familiar setup seen in April 2022.
A little hope remains as XRP still holds above its realized price as the market hints at an ongoing reset. The thin liquidity hanging over the market alongside risk appetite waning might suggest more of a reset.
According to Scott Melkel, XRP is trading exactly at the last meaningful support on the chart before a huge air pocket, which makes this particular moment crucial to watch for XRP's price.
Meanwhile, RSI indicators are now at oversold levels, below 30, hinting at the possibility of a relief rally in the coming sessions.
Tomiwabold Olajide
Alex Dovbnya
Arman Shirinyan