XRP Price Nearly Drops 38%, Liquidation Hits 6-Month High

XRP, once on the verge of reaching a new all-time high, has recently charted a two-month low. This shift comes amid widespread bearish market conditions, leading to massive liquidations among XRP holders. 

The sudden downturn caused significant losses, and traders are now facing a volatile market environment.

XRP Traders Face Massive Loss

XRP traders have faced their largest liquidations in six months as the altcoin price slipped below $2. In a single day, long liquidations surged to $64 million, highlighting the rapid exit of traders. This spike in liquidations reflects growing fear and uncertainty in the market.  

As a result, the large number of liquidations could hinder the future support XRP receives from the Futures market. Many bullish traders were forced to close positions, which could affect market sentiment moving forward. The price dynamics and heavy sell-offs have added further pressure on XRP’s recovery.

XRP Liquidations. Source: Coinglass

Realized profits from XRP holders surged to $1.5 billion as panic selling intensified. Investors moved to secure profits after the sharp price decline, fearing additional losses should XRP fail to recover. The large profit-taking event further exacerbated the downward pressure on XRP, reinforcing the uncertainty around its near-term price trajectory.

Increased profit-taking activity has slowed the recovery process for XRP, especially with some investors choosing to move to stable assets. However, this behavior also reflects cautious optimism, as traders may wait for signs of stabilization before re-entering the market. This dynamic will play a key role in XRP’s next move.

XRP Realized Profits. Source:  Santiment

XRP Price Prediction: Consolidation Next?

XRP has been down 17% over the past 24 hours, trading at $2.38. The biggest damage occurred during the intra-day low when the price fell 38% to hit $1.77. This sharp drop indicates significant market volatility, with investors unsure about the coin’s near-term future.  

At present, XRP is hovering above the critical support of $2.18 while facing resistance at $2.73. This range has historically been a consolidation zone for the altcoin, suggesting that XRP could remain trapped within this price band for some time. A breakout from either of these levels will be crucial.

XRP Price Analysis. Source:  TradingView

If XRP can reclaim $2.73 as support, it would have a chance to rise toward $2.95. Successfully breaching this resistance would invalidate the current bearish outlook, paving the way for potential recovery.