XRP Experiences Sharp Correction Amid Record Liquidation
XRP (XRP) saw a significant price correction within a week after reaching fresh highs above $3.45. The crypto plunged nearly 10% in recent sessions, with a steep 10.33% dip on Wednesday being its steepest daily decline since April 6, drawing attention to current market dynamics.
Concurrent with the price drop, XRP futures open interest experienced a sharp decline, suggesting reduced speculative confidence among leveraged traders.
Record Whale Liquidation Taps XRP
The sharp price reversal triggered what appears to be the third-largest XRP long liquidation event on Binance this year. This event resulted in approximately $86 million being wiped out within hours.
This activity aligns with broader whale movements noted recently. A Ripple co-founder-associated wallet prompted significant XRP outflows, sending over $140 million worth of the token to exchanges. While large-scale exits persist, the pace has been slowing, failing to reach peak withdrawal levels seen previously.
Description of associated chart data source and impact of liquidation on futures OI remains as placed above.
Meanwhile, Cointelegraph highlighted whale accumulation centered around 2,743 wallets holding over 1 million XRP each, representing 4.4% of the circulating supply.
Trends in all-time whale flows suggest a potential shift, with data showing the 90-day average turning negative. This could indicate large holders exiting, potentially signaling a local market peak.
Market Structure Assessment
Despite the correction, XRP’s broader market structure retains bullish characteristics in the longer time frame. Last week’s multi-month high is still intact, underlining the potential underlying trend.
The immediate psychological barrier at $3.00 holds significant liquidity importance. Technical levels are being tested closely. A price break above $3.25 would confirm a bullish shift on lower time frames, solidifying the $2.95 support. Conversely, continued selling pressure suggests XRP may test the $2.66-2.86 liquidity cluster.
Key support remains centered around $2.64, a former resistance level. Should price break below $3.00 and then $2.64 closely together, the prevailing bullish trend structure could face a considerable challenge.
Disclaimer: This analysis does not constitute investment advice.
