- XRP is up 1% over the past 24 hours, but the price action was still poor
- XRP liquidations were both below and above the price level at the time of writing
XRP has been in the spotlight lately, partly due to legal developments at the US SEC and Ripple’s CEO support for Kamala Harris in the upcoming US elections.
However, over the past week, XRP has fallen significantly on the charts, down more than 4% in the past seven days. While the token rose 1.1% in the past 24 hours, 24-hour trading volume increased by more than 22%, reaching a value of $1.07 billion.
This uptick pushed the volume-to-market cap ratio to 3.58%, raising concerns about a cryptocurrency the size of XRP.
XRP Price Action and Prediction
At the time of writing, XRP’s price action appeared to be consolidating into a large ascending triangle pattern, a pattern that recently broke below the lower trendline.
This breakout could mean a further decline for XRP, but has yet to be confirmed via a successful retest.
Another smaller ascending triangle pattern also formed, also breaking south – a sign of potential weakness. If the new test confirms the breakout, XRP could register further declines on the price charts.
Source: TradingView
However, this downward breakout could be manipulation, a common phenomenon in financial markets, aimed at driving weak hands out of their positions.
If that is the case, XRP could see a significant rally, although it remains unclear what 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 the press time price.
There were almost $1 million worth of leveraged XRP liquidations at $0.54014, with another $900,000 at $0.51946.
This suggested that price movements could go either way, as prices often trend towards zones of high liquidity to fuel further movements. In addition, there were over $1.2 million worth of liquidation orders around $0.51022 and $0.50.
Source: Coinglass
This implied that XRP could swing in either direction depending on how the market tries to capture liquidity.
Additionally, the XRP Ledger Network has seen a sharp increase in new pools for its Automated Market Maker (AMM) recently, with 66% of all
In terms of performance among the top cryptocurrencies, XRP currently ranks fifth, behind Bitcoin (BTC), Solana (SOL), Ethereum (ETH), and Dogecoin (DOGE).
Source: TradingView
Notably, Solana is the only top coin to outperform Bitcoin since 2021, while others, including XRP, have struggled to keep pace.
However, despite the current uncertainty surrounding XRP’s short-term movements, the long-term outlook remains bullish. However, certain factors still need to align before this positive sentiment can fully manifest.
Traders should remain cautious but optimistic, especially as potential upside moves loom.