Bearish trend hits XRP: Liquidations rise as price drops below $0.5
XRP has been unable to rebound into a positive trend, and interest in it has started declining.
Edited By: Ann Maria Shibu
- XRP saw over $3 million in liquidation in the previous trading session.
- It continued to trend below its short moving average.
XRP has experienced mixed price trends in the last few days, which has impacted the level of interest in the asset. The recent decline reduced the volume of interest and led to a spike in long liquidation volume.
XRP’s price falls
An analysis of the XRP price trend showed that by the end of trading on 17th June, it rose by 3.21%, with its price hitting $0.50.
However, by the next trading session on 18th June, most of those gains had been wiped out.
The daily time frame chart analysis showed that XRP declined by 2.73% on 18th June, trading at around $0.49.
The analysis also indicated that the trend of trading continued below its short moving average (yellow line). The yellow line has been serving as its resistance for a while, at around $0.51.
As of this writing, the decline continued, and XRP was trading at around $0.48. Additionally, an analysis of its Relative Strength Index (RSI) indicated that it remained in a bear trend, as the RSI was below the neutral line.
The chart also showed that its long moving average (blue line) served as a longer-term resistance level at around $0.56. The position of the blue line above the yellow line further highlighted the weakness in XRP’s price at the moment.
XRP sees over $3 million in liquidation
The XRP price drop resulted in a spike in liquidation volume. An analysis of the liquidation chart on Coinglass showed that over $3 million was liquidated by the end of trading on 18th June.
The chart indicated that the long liquidation volume was around $2.79 million, while the short liquidation volume was around $343,000.
Interest in Ripple drops
An analysis of the XRP Open Interest showed that its price drop also impacted its trend. A look at the chart on CryptoQuant revealed that when XRP’s price saw an over 3% increase and rose to the $0.50 price region, its Open Interest spiked.
The chart indicated that Open Interest rose to over 422 million.
Realistic or not, here’s XRP market cap in BTC’s terms
However, as the price dropped, the Open Interest also declined. The chart showed that the Open Interest had fallen to around 405 million as of this writing.
This indicates that some traders closed their positions as the price declined. While the overall trend remains positive, there has been a noticeable decline in Open Interest.