XRP is caught up in the recent market sell-off, extending a seven-day drop to a low of $2.10 on Tuesday.
The broader crypto markets remain under pressure as risk sentiment wanes and technical signals dominate short-term trading behavior across major cryptocurrencies.
The sell-off in the last 24 hours has resulted in over $1.03 billion in liquidations, of which $726.52 million are long positions and $308.22 million in shorts, according to CoinGlass data. XRP saw $41.29 million in liquidations over the last 24 hours as the price fell; several altcoins have now fallen to multimonth lows.
Amid the market sell-off, XRP’s trading volume has risen 71% in the last 24 hours to $7.4 billion. More often than not, volumes reflect traders’ positioning; in this case, on1chain data points to XRP as entering a “good buy” zone.
XRP enters “good buy” zone
XRP dropped nearly 5%, reaching $2.10 in the early Tuesday session before stabilizing to trade at $2.18 at press time. XRP fell for seven consecutive days since its breakout stalled at a high of $2.58 on Nov. 10.
According to on-chain analytics firm Santiment, the vast majority of cryptocurrencies are now flashing extreme pain for average trading returns. Santiment shares average trading returns based on the MVRV indicator for major cryptocurrencies, including XRP, in the last 30 days.
XRP wallets active in the past 30 days saw an average performance of -10.2%, which puts XRP in a “good buy” zone. The lower the MVRV goes, the higher the probability of a faster recovery.
Market sentiment hit “extreme fear” as volatility jumped, with the Fear & Greed Index falling to lows last seen in July 2022, increasing the chances of a relief rally.
If the market rebounds, XRP would face its next resistance at $2.50 and $2.63, which are the daily MA 50 and 200, while the $2 level might be tested as the price support before the next upward move begins.
Source: https://u.today/xrp-soars-71-in-volume-amid-brutal-market-sell-off-whats-next
