From cointelegraph by Nancy Lubale
XRP
XRP$2.48is underperforming the crypto market on Feb. 24, down 5% in the last 24 hours to trade at $2.49.
What to know:
- XRP has seen losses after being rejected by the resistance level at $2.60 over the last few days.
- Other top-cap cryptocurrencies are also down, with the global crypto market capitalization dropping 1.8% to $3.15 trillion.
- Nearly $10.1 million worth of XRP futures positions have been liquidated over the last 24 hours, with long liquidations amounting to $9.4 million.
- XRP technicals hint at further declines if a key level is not reclaimed.
XRP price drops with broader crypto market
The bearishness was not only exclusive to XRP as crypto prices also dropped across the board. The slump continues as Bitcoin
BTC$95,935failed to reclaim $100,000 after rising as high as $99,500 on Feb. 21.
Key points:
- Bitcoin was down 0.7% on the day to trade around $95,900.
- EtherETH$2,689has lost more than 3.6% of its value over the last 24 hours to trade just above $2,700.
- Other top-cap cryptocurrencies such as SolanaSOL$159.33, DogecoinDOGE$0.2314and CardanoADA$0.7375lost the most, dropping 7%, 5.5% and 5.2%, respectively.
Related: XRP price will see $3.20 next if key support level is reclaimed — Analyst
This performance in the crypto market is accompanied by massive liquidations in the derivatives market, according to data from CoinGlass.
- The crypto futures market witnessed the liquidation of over $234 million worth of leverage positions in the last 24 hours, with $187 million in longs.
- Over $9.4 million long XRP positions have been liquidated over the same period against $753,000 shorts.
- When long positions are liquidated, bullish traders are forced to sell their positions.
- This sudden selling adds downward pressure on the price, accelerating the decline.
Furthermore, the drop in XRP price accompanies a decline in its funding rates.
- XRP’s funding is down from 0.25% per week on Feb. 22 to 0.04% per week on Feb. 24.
- A drop in funding rates indicates reduced demand for long positions and increased caution among XRP traders.
XRP price weighed down by the 50 SMA
XRP price is struggling to recover after losing a critical support level.
- XRP’s 11% decline between Feb. 15 and Feb. 24 saw it breach the 50-day simple moving average (SMA), currently at $2.73.
- The price must flip this level back into support to increase the chances of a sustained recovery.
- If the 50-day SMA holds as resistance, a decline to the next support level at $2.00 is likely.
- The relative strength index on the daily chart reads 41, indicating bearish momentum.
- Conversely, the XRP price now has support at $2.40, which is the 100-day SMA.
- If XRP closes above this level, a retest of the 50-day SMA at $2.72 is in the cards.
- If this happens, it may extend the rally to retest its multi-year high of $3.40.
Popular analyst Dark Defender spotted XRP price consolidating within a symmetrical triangle and said it needs to rise significantly above $2.77 to continue the “2nd leg of the bullish weekly structure.”
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