XRP Fails to Break $2.32, Investors Face Losses

XRP, a prominent altcoin, has faced challenges in securing growth recently. Despite attempts to rally, XRP has struggled to break through the $2.32 level, leaving its price hovering just above $2.00. Investors who bought during XRP’s three-week bull run are now facing losses due to the failed breach of crucial support levels.

According to the liquidation map, a significant amount of short positions—around $400 million worth—are at risk of liquidation if XRP’s price rises to $2.32. However, with XRP trading at $2.15, just 8% away from the $2.32 threshold, the potential for liquidations does not appear imminent. The behavior of XRP’s investors suggests that these liquidations may not take place in the short term, as many are leaning towards selling rather than holding.

XRP’s overall momentum shows signs of weakening, as reflected by the Realized Profit/Loss ratio. This indicator suggests that realized profits are declining and may soon turn into losses. The supply being sold likely originated from purchases made during XRP’s November 2024 bull run when the price surged to $2. XRP formed a new high back in January; however, since then, its price has dropped back to $2, and many investors who bought at higher levels are now selling to offset losses. This ongoing selling pressure is keeping XRP from experiencing any significant uptick, further dampening bullish sentiment.

Currently, XRP is trading at $2.15, just below the $2.16 local resistance level, which it failed to secure as support earlier this month. The altcoin is consolidating beneath $2.27, a resistance level that has been a point of contention since the end of March. If the price remains above the $2.00 support, it could stabilize at these levels, preventing further losses for investors. The chances of continued consolidation seem high, as XRP holds above $2.00. This could keep the market relatively stable as investors wait for further signals to confirm the next move. With a lack of major catalysts, the price may fluctuate within this range.

However, should XRP breach the $2.27 resistance and rise toward $2.40, the earlier-mentioned liquidations could trigger a new wave of buying, potentially driving the price upward. This would provide a more bullish outlook and shift the market sentiment.