XRP has stunned bullish traders in the last 24 hours as bets placed on the asset’s rebound move flailed in the last four hours. This is due to the coin’s recorded price and volume slips, leading to a severe liquidation imbalance on the XRP market.
XRP price slips below $2 on waning demand
CoinGlass data shows that long position traders were wiped out, losing $2,180,000 within the last four hours as the price slipped below $2 once again. This set up a liquidation imbalance of 21,506% within the short period under consideration.
Notably, XRP had signaled upward momentum in price as investors anticipated a sustained climb after it reclaimed $2. However, the coin once again faced resistance at $2.05, which triggered a reversal in price.
XRP dropped from a daily peak of $2.03 to hit a low of $1.92 within the last 24 hours. As of press time, XRP exchanges hands at $1.92, which represents a 2.64% decline within this period. The asset has also suffered a significant 17.77% decline in trading volume to $3.01 billion.
The XRP market is witnessing weak demand for the asset and increased selling pressure. There has also been an upsurge in whale outflows, sparking concerns among new buyers.
If XRP had breached the $2.05 resistance and found support at $2.10 or $2.15, it could have rekindled the interest of investors in the ecosystem.
The recent liquidation imbalance has heightened the concerns of traders, particularly with the broader crypto market also dipping by over 2.23%.
Meanwhile, traders who were bearish on XRP barely lost any funds, as only $10,090 were lost by short position traders.
XRP’s technical signals suggest that the coin might face further declines. Primarily, the Relative Strength Index (RSI) is at 44.8%, which indicates that XRP is not near oversold territory. This increases the coin’s vulnerability to more declines as new holders might want to get rid of the asset.
Can RLUSD volume growth spark XRP rally?
XRP is desperately in need of a bullish catalyst to support upward momentum for the coin.
As per a U.Today report, the spike in Ripple USD stablecoin volume could act as a trigger if demand is sustained. This is because the transaction fees, which are paid in XRP from the huge demand for RLUSD, get burned.
The development is deflationary as it reduces the circulating supply of XRP and could support price stability. Investors will be keenly watching developments, with hopes that the bearish outlook will blow over soon.
Source: https://u.today/xrp-prints-21506-liquidation-imbalance-in-four-hours
