XRP's Price Plunge: Bulls Face Liquidation as Support Levels Tested

XRP, the native token of Ripple Labs, has been a subject of intense interest among crypto enthusiasts despite its recent price decline. The on-chain analytics firm Coinglass reported that the crypto asset is currently trading near $2.50, having experienced a price drop of over 6.50% in the past 24 hours. This market uncertainty has led to a decline in trading volume, with a 65% drop in participation from traders and investors.

The Binance XRPUSDT Long/Short ratio currently stands at 2.80, indicating strong bullish sentiment among traders. However, this metric also reveals that for every 2.80 long positions, there is a single short position. Additionally, at press time, 73.6% of top XRP traders on Binance hold long positions, while 26.4% hold short positions.

With this notable price decline, XRP seems to be failing to hold its crucial support level of $2.60, which it achieved during the significant price reversal. Based on the recent price action and historical momentum, if XRP doesn’t rebound and closes a daily candle below the $2.50 level, there is a strong possibility it could fall by 25% to reach the next support at the $1.95 level. Meanwhile, XRP’s Relative Strength Index (RSI) is at 38, indicating it could face a price decline due to its weak strength. Additionally, the asset’s 200 Exponential Moving Average (EMA) is still below the price, indicating an uptrend.

With the bearish price momentum, traders holding long positions seem to be liquidating. As of now, the major liquidation areas are near $2.47 on the lower side and $2.75 on the upper side, with traders over-leveraged at these points. If the current market sentiment remains unchanged and the price falls to the $2.47 level, nearly $22.68 million worth of long positions will be liquidated. Conversely, if the sentiment shifts and the price rises to the $2.75 level, approximately $99 million worth of short positions will be liquidated.

In the broader crypto market, some coins are flashing bullish hints despite the grim outlook for altcoins relative to Bitcoin. XRP, for instance,