On April 30, XRP’s price briefly fell to $2.15, triggering a significant bias in liquidations.
According to Coinglass data, $13.9 million worth of long positions were liquidated within 24 hours, while only $1.49 million in shorts were liquidated, creating an imbalance of nearly 1000%. This imbalance indicates a strong long bias among traders.
When prices fall, an excess of long positions can be quickly liquidated, as occurred in this case, leading to a rapid cascade that pushed prices lower. Furthermore, a 4% decline in open interest suggests that many traders were exiting their positions.
Despite this, XRP has recovered to a key psychological support level of approximately $2.20. Some traders believe this was a “flush” designed to eliminate weaker positions before a potential reversal. However, others are concerned that if prices fall again, the long bias could lead to further liquidations and capitulation.
The drop occurred unexpectedly, as many traders had anticipated continued upward momentum. XRP has made significant progress this year, particularly after the U.S. Securities and Exchange Commission halted its appeal against Ripple, potentially opening the door for the company to collaborate with U.S. banks in the near future.
A new stablecoin, RLUSD, has also been launched by Ripple, attracting significant interest and surpassing a market cap of $300 million. Furthermore, over ten companies have submitted applications for XRP spot exchange-traded funds, with analysts predicting an 80% or higher likelihood of approval. Another potential driver for increased XRP Ledger volume is Ripple’s acquisition of Hidden Road, a broker handling over $10 billion in daily transactions.
On the technical front, the asset is being traded within a narrow range, with no significant momentum in either direction, making the $2.15 and $2.30 levels crucial to monitor in the short term. Currently, most technical indicators are reflecting a neutral stance. With a relative strength index of 52.47, no clear trend is discernible.
A slight bullish bias seems to be indicated by the moving average convergence divergence indicators, which are showing a slight upward trend. Although longer-term averages present a mixed outlook, shorter-term estimated moving averages (10, 20, 30) are positioned in the buy zone. The 200-day SMA and EMA are bullish, offering support around the $2.00 level.
If the $2.15–$2.20 range is held by XRP and a break above $2.30 occurs, a shift toward a bullish trend could be signaled. This would align with the recent developments favoring Ripple. On the other hand, failure to maintain above $2.15 could result in another wave of long liquidations. The current imbalance indicates that many traders remain highly leveraged, leaving the market susceptible to abrupt declines.
