Key Insights:
- Long liquidations pushed XRP lower while traders showed caution with few new short positions forming.
- Whale wallets dropped sharply, yet remaining large holders increased their XRP to a seven-year high.
- XRP now tests key mid-band support, with $2.12 weekly close needed to avoid deeper losses.
XRP has faced a sharp decline after trading sideways near $2.10 to $2.20. The fall began around December 1, and it has been linked to the clearing of many long positions. Data shows a wave of liquidations forced bullish traders out of the market as prices dropped.
The price of XRP was around $2.01, showing a 1.9% loss in the past 24 hours and over 9% for the week. Despite the drop, there is no clear rise in short positions. Sell-side pressure has not increased near current levels, and no large clusters of short entries have appeared during this move.
Key Resistance Sits at $2.30
The $2.30 level remains an important area on the chart. Liquidity data shows this zone continues to attract sell orders. It has acted as resistance in the past, and traders are watching to see if price will move back toward it or be rejected again.
While long positions have been wiped out, there has been little sign of traders opening aggressive shorts. This has left the $2.30 level untouched since the drop.
One analyst commented,
Source:CW/XFewer Large Wallets, But Holdings Rise
Recent data from Santiment reveals a drop in the number of large XRP wallets. In the last eight weeks, 569 wallets holding more than 100 million XRP have exited that group. This marks a 20.6% reduction in large holders.
However, the wallets that remain now hold more XRP than before. Their combined total has reached 48 billion XRP, the highest in seven years. This increase shows that a smaller number of high-balance holders have added more to their positions in recent weeks.
Mid-Channel Support in Focus
XRP was still trading inside its wider range, between $1.80 and $3.80. It is now sitting around the middle of that range, near the midline of a technical channel used by analysts.
Traders are focused on the $2.12 level. A weekly close above that line is seen as key for holding support. Without that close, there may be more pressure on the lower side of the range.
One chart analyst noted, “We’re at a make-or-break point. $2.12 matters.”
| DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing. |
Source: https://coincu.com/analysis/xrp-longs-liquidated/
