XRP price briefly dropped below $2 yesterday after the crypto market crashed, wiping out nearly $1 billion in total liquidations. Ripple (XRP) has since recovered above $2, but as selling activity remains strong, investors remain anxious about whether now is the right time to buy XRP.
Ripple price today trades at $2.09 after a 4% decline in 24 hours with an intra-day low of $1.92.
XRP Price Holds Above $2 Amid Surging Liquidations
XRP price has been holding levels above $2 despite the crypto market crashing. However, rising long liquidations have exerted additional sell-side pressure on the price. Data from Coinglass shows that in the last 24 hours, more than $37M in long positions on XRP were liquidated.
XRP’s liquidation map further shows that if the XRP price were to fall below $2 again and breach its multi-month support level of $1.95, more than $62M of open long positions would be liquidated, causing another long squeeze.
Besides this looming liquidation risk, concerns also emerged after a whale address moved over 167M XRP tokens during the crash. This transfer sparked fears of a looming sell-off that may push the XRP price lower.
XRP Head and Shoulders Pattern Emerges – Time to Buy Ripple?
XRP price has established support at $1.95, a level that it has defended multiple times. Buyers have consistently stepped in at this price, which also happened yesterday, forcing Ripple to move back above $2. As long as this support level holds, Ripple still has a chance meet its bullish XRP price prediction target.
However, a bearish head and shoulders pattern has emerged on Ripple’s one-day chart. This pattern hints at a trend reversal from bullish to bearish. The neckline of this pattern is at the critical support of $1.95.
If buyers fail to defend this level and XRP price falls below the 200-day SMA of $0.87, it could see a steep decline that is equal to the height of this pattern. This will cause the price to fall to $0.50. Such a steep decline will wipe out all the gains made in late 2024.
The MACD shows a bearish momentum as this line falls further in the negative region. The MACD histogram bars also show that the selling pressure is strong, which also shows a grim outlook.
As the downward pressure intensifies as the risk of more long liquidations still looms, there is a chance that the XRP price may once again drop to $1.95. If this resistance fails to hold firm, it could spark a steep price decline, making this not the right time to buy Ripple unless the broader crypto market sentiment changes.
Frequently Asked Questions (FAQs)
XRP price recovered past $2 after a crypto market crash sparked nearly $1 billion in liquidations. If the broader crypto market sentiment recovers, Ripple could extend its gains.
Despite the price recovery, now might not be the right time to buy Ripple because of a bearish head and shoulders pattern.
If the bearish momentum prevails, XRP price faces a steep decline towards $0.50.
muthoni
Muthoni Mary is a seasoned crypto market analyst and writer with over three years of experience dissecting blockchain trends, price movements, and market dynamics. With a sharp eye for technical analysis and an in-depth understanding of on-chain metrics, she delivers insightful, data-driven content that helps investors navigate the fast-paced world of digital assets.
Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
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