The price of XRP has experienced a significant decline in the past 24 hours, dropping from $3.34 to $3.10 amid a broader wave of market liquidations exceeding $1 billion. Here’s a detailed look at the factors influencing this downturn and the technical levels traders are closely monitoring.
Market Liquidations Prompt Major Drop
The recent decline in XRP’s price is part of a larger market correction, coinciding with profit-taking in U.S. stocks that has altered investor sentiment. Market-wide liquidations surpassed $1 billion, prompting a capitulation in XRP during midday trading.
By noon, prices plummeted from $3.22 to $3.09 due to aggressive sell-offs, resulting in a peak trading volume of 436.98 million units within an hour. This surge in activity marks one of the largest trading bursts for the token this quarter, highlighting a rapid unwinding of speculative positions.
The Chief Technology Officer of Ripple has reiterated the XRP Ledger’s commitment to integrating into the global financial infrastructure, offering a fundamental layer of trust despite short-term volatility.
Price Action and Volatility Levels
In the 24-hour period from 3:00 AM on August 14 to 2:00 AM on August 15, XRP’s trading range fluctuated from $3.34 to $3.05, representing a volatility change of 8.69%. After the midday drop, the price settled into a narrow band between $3.05 and $3.13, indicating a decrease in bearish momentum.
During the last hour of trading, two notable volume spikes of 4.53 million and 3.76 million units emerged, suggesting renewed institutional interest in the support range. Such inflows into the spot markets following a steep decline often indicate strategic positioning by larger investors looking to capitalize on lower price levels.
Key Technical Levels to Monitor
Support has been confirmed between $3.05 and $3.09, tested repeatedly during intense selling periods. The immediate resistance is now at $3.13, with secondary resistance at $3.20. The drop in volumes following the midday peak signals exhaustion in liquidations.
A recovery above $3.10 in low liquidity conditions suggests that early re-accumulation may be underway, although follow-up buying above $3.13 will be necessary to confirm a short-term reversal.
Factors Traders Are Watching
Market participants are keeping a close eye on whether $3.05 holds during the next wave of volatility, especially if further market-wide liquidations occur. The activity of large holders’ wallets is being monitored for signs of accumulation, and changes in funding rates on derivative markets for XRP are under scrutiny for potential leverage re-entry.
The correlation with stock markets remains significant, with expectations of rate cuts from the U.S. Federal Reserve continuing to influence risk sentiment. As global markets remain sensitive to macroeconomic signals, cryptocurrency price action is likely to stay closely linked to investor appetite for riskier assets.
Meet William, a proud Bethel University alumnus with a fervent passion for lifestyle and culture topics. His keen interest doesn’t stop there; he’s also deeply engrossed in current events of all kinds. William dedicates himself wholeheartedly to this site, thriving on the collaborative energy he shares with Suzanne, his long-standing partner in crime.
Having navigated their university courses side by side for years, their teamwork on the site is nothing short of dynamic. Together, they bring a unique blend of insights, proving that two heads are indeed better than one in delivering compelling content.
