XRP News Today: XRP Drops 17% as Liquidations Top $114M, Technical Indicators Signal Bullish Recovery Potential

XRP has undergone a significant two-day decline of 17%, triggering over $114 million in liquidations, yet technical indicators suggest the cryptocurrency remains in a bullish trajectory. The recent price pullback has brought XRP toward the Bollinger Bands midline at $2.91, a level historically recognized as a critical support zone. Analysts from COINOTAG note that while volatility and trading volume surged, the price has remained above key short-term moving averages, reinforcing sustained market strength [1]. This technical configuration implies the current correction is a healthy consolidation phase rather than a breakdown, potentially setting the stage for renewed upward momentum if the $2.90–$3.00 range holds [1].

The price action reflects a broader market dynamic where traders are closely monitoring Bollinger Bands to gauge near-term directionality. A pronounced red candle on July 23 saw nearly 200 million XRP tokens traded, underscoring heightened volatility. However, the asset has stayed within the Bollinger Bands' defined range, with the midline at $2.91 acting as a pivotal inflection point. Sustaining prices above this threshold could reaffirm buyer strength, while a decisive break below $2.90 might extend the pullback into a deeper correction [1]. The technical setup emphasizes liquidity at key levels as a critical factor for institutional and retail participants to observe.

Market sentiment remains cautiously optimistic, with the correction viewed as a necessary reset rather than a reversal. The consolidation phase allows the market to absorb recent gains and recalibrate ahead of potential upward moves. Analysts highlight that XRP’s position above key moving averages and within the Bollinger Bands’ bullish framework supports the likelihood of a rebound toward the upper band, provided buyers defend the $2.90–$3.00 range [1]. This scenario aligns with broader crypto trends, where short-term price dynamics often dominate over fundamental narratives, particularly in environments of regulatory uncertainty.

The broader context includes regulatory developments influencing crypto markets, though these are not directly tied to XRP’s price action. The U.S. Securities and Exchange Commission’s (SEC) delayed decision on a proposed ETF, pushing its review timeline to July 24, 2025, underscores a climate of uncertainty that could amplify volatility across digital assets [2]. While XRP’s fundamentals remain unchanged, traders are prioritizing technical indicators to navigate near-term fluctuations. The Bollinger Bands’ compressed range, a pattern often preceding significant price movements, highlights the importance of monitoring volume patterns and order flow for directional cues [2].

For investors, the current technical framework suggests a high probability of either a rebound or a continuation of the correction, depending on how buyers and sellers interact at critical levels. Traders are advised to remain vigilant for shifts in volume or breaches of key support zones, which could signal changes in trend dynamics. The $2.90 support zone represents both a psychological hurdle and a test of market confidence, with its resilience crucial for maintaining the bullish outlook.

In summary, XRP’s recent pullback does not undermine its overall technical structure, with Bollinger Bands indicating the asset remains within a healthy trading range. The correction is a strategic reset rather than a breakdown, and maintaining the $2.90–$3.00 range will be essential for preserving the positive outlook. Investors are encouraged to monitor these levels closely as the market navigates the next phase of its trajectory.

Source: [1] [XRP Price Just Drops Hard but $10 Play Is Still on the Table] [https://www.coinspeaker.com/xrp-price-just-drops-hard-but-10-play-is-still-on-the-table/]; [2] [SEC Delay on Canary SUI ETF Proposal May Influence ...] [https://www.bitget.com/news/detail/12560604797113].