- XRP was up by 1% in the last 24 hours, but its price action was still poor
- XRP liquidations sat both below and above its press time price levels
XRP has been in the spotlight lately, partly due to legal developments with the U.S SEC and Ripple’s CEO support for Kamala Harris in the upcoming U.S elections.
However, over the past week, XRP has dropped significantly on the charts, by over 4% in the last seven days. Now, while the token did hike by 1.1% in the last 24 hours, its 24-hour trading volume climbed by over 22% – Hitting $1.07 billion.
This uptick pushed the volume-to-market cap ratio to 3.58%, which raises concerns for a cryptocurrency of XRP’s stature.
XRP price action and prediction
At the time of writing, XRP’s price action seemed to be consolidating in a large ascending triangle pattern, one that recently broke below its lower trendline.
This breakout could signal further declines for XRP, but it is yet to be confirmed through a successful retest.
Another smaller ascending triangle pattern formed too, also breaking south – A sign of potential weakness. If the retest confirms the breakout, XRP could register further declines on the price charts.
Source: TradingView
However, this downside breakout could be manipulation, a common occurrence in financial markets, aimed at forcing weak hands out of their positions.
If that’s the case, XRP could see a significant rally, although it remains unclear which direction the price will take next.
Liquidations and performance comparison
Looking at the liquidation heatmap for XRP, there seemed to be a notable cluster of liquidity, both above and below its press time price.
There were almost $1 million worth of leveraged XRP liquidations resting at $0.54014, with another $900,000 at $0.51946.
This suggested that price movement could go either way, as prices often gravitate towards zones with high liquidity to fuel further movements. Additionally, there were more than $1.2 million in liquidation orders around $0.51022 and $0.50.
Source: Coinglass
This implied that XRP could swing in either direction, depending on how the market seeks to capture liquidity.
Moreover, the XRP Ledger network has seen a sharp uptick in new pools for its Automated Market Maker (AMM) lately, with 66% of all XRP pools being created in the past week alone.
In terms of performance among top cryptocurrencies, XRP currently ranks fifth behind Bitcoin (BTC), Solana (SOL), Ethereum (ETH), and Dogecoin (DOGE).
Source: TradingView
Notably, Solana is the only coin from the top ranks outperforming Bitcoin since 2021, while others, including XRP, have struggled to keep pace.
Despite the current uncertainty around XRP’s short-term movements, however, the long-term outlook remains bullish. Even so, certain factors still need to align before this positive sentiment can fully take hold.
Traders should remain cautious but optimistic, especially with potential upward movement looming.
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