On April 30, XRP’s price briefly fell to $2.15, triggering a significant bias in liquidations.
Coinglass data shows that traders liquidated $13.9 million in long positions within 24 hours, while short liquidations totaled only $1.49 million, creating an imbalance of nearly 1000%. This imbalance indicates a strong long bias among traders.
When prices fall, traders can quickly liquidate an excess of long positions, as happened in this instance, triggering a rapid cascade that drove 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 trades within a narrow range, showing no significant momentum in either direction. Traders should closely monitor the $2.15 and $2.30 levels 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.
The moving average convergence divergence indicators show a slight upward trend, suggesting a mild bullish bias. While longer-term averages provide a mixed outlook, the shorter-term estimated moving averages (10, 20, 30) currently remain in the buy zone. The 200-day SMA and EMA are bullish, offering support around the $2.00 level.
If XRP maintains the $2.15–$2.20 range and breaks above $2.30, it could signal a shift toward a bullish trend.. 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.
