XRP prices continue to struggle as conditions in the broader cryptocurrency market worsen. The token has remained under pressure for several days and failed to sustain any recovery attempts.
Despite the sustained sell-off, XRP investors are actively accumulating capital with the aim of defending key support levels and limiting downside risk.
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XRP holders change stance
Current market sentiment surrounding XRP remains fragile as liquidation data highlights heightened downside risks. According to the liquidation heatmap, long XRP traders will face significant risks if the price falls towards $2.00. The long-term liquidation cluster is around $2.02, which equates to approximately $25.4 million in leveraged positions.
Once in this zone, bullish confidence can quickly disappear. Forced liquidations will increase selling pressure and attract short sellers.
This change is likely to lead to a decisive bearish shift in sentiment, especially among derivatives traders who have remained optimistic despite XRP’s long-term downtrend and weakening short-term momentum.
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Despite short-term weakness, macro indicators suggest improvement in underlying demand. The exchange’s position change data shows an increase in green bars, indicating net outflows from the exchange. This trend typically reflects increased buying pressure as investors move XRP into private wallets rather than preparing assets for sale.
This marks a notable change from the past three months, when selling pressure dominated XRP price movement. Sustained accumulation could help stabilize price trends, unless broader market conditions deteriorate further.
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The shift from distribution to accumulation supports the possibility of a medium-term recovery scenario.
XRP price may be safe from further decline
XRP price is trading around $2.06 at the time of writing, maintaining an active downtrend that has capped a recovery for over 10 days. The token remains above the $2.03 support level, which remains important for short-term market structure and trader confidence.
This support has withstood multiple tests in recent weeks, suggesting strong investor interest at current levels. Even if XRP consolidates around that range, continued accumulation is expected to protect it at $2.03.
A successful rebound could push the price above $2.10, allowing XRP to break the downtrend and regain momentum.
However, broader market weakness could invalidate these bullish efforts. If there is a decisive break below $2.03, XRP could fall below $2.00.
Such a move could invalidate the bullish theory and trigger a long-term liquidation of around $25 million, which could push XRP down to $1.93 on increased selling pressure.
