XRP continues to face intense pressure as the cryptocurrency falls near the key support level of $1.14, sparking concerns that the sell-off in the crypto market is not over yet.
At the time of writing, XRP is trading at $1.1904, down 0.75% since it opened early Thursday in Asian trading.
The drop comes in line with the overall crypto market weakness that saw Bitcoin dip below $63,000, causing investor sentiment to become more cautious about riskier assets.
What is more worrisome is the sharp increase in liquidation activity.
Data shows that over $25 million in XRP positions were liquidated in a single day, with almost all of them involving traders opening long positions.
This situation shows that many investors expected the price to rise, but the market moved in the opposite direction and forced their positions to be automatically closed.
From a technical perspective, XRP is still in a clear downtrend.
The current price pattern shows a series of lower highs and lower lows, indicating that sellers are still in strong control.
Despite several attempts to bounce back, the momentum failed to hold as selling pressure returned to the market.
However, there are some signs that XRP may be approaching an oversold phase.
The Relative Strength Index (RSI) indicator is currently in the oversold zone, a condition that usually opens the way for a short-term recovery as buyers start to re-enter the market.
While several positive developments regarding the Ripple ecosystem and increased institutional access to XRP products continue to support the asset’s long-term prospects, the current sentiment remains negative.
As long as XRP fails to break through key resistance levels and build stronger upward momentum, downside risks still haunt the market.
