- XRP increased by 1% over the past 24 hours, yet its overall price performance remains disappointing.
- XRP liquidations were recorded both below and above its current price levels.
XRP has garnered attention recently, partly due to legal updates involving the U.S. SEC and the support from Ripple’s CEO for Kamala Harris in the upcoming U.S. elections.
However, in the past week, XRP has seen a notable decline, dropping over 4% within the last seven days. Although the token appreciated by 1.1% in the past 24 hours, its trading volume surged by more than 22% to reach $1.07 billion.
This increase elevated the volume-to-market cap ratio to 3.58%, raising concerns for a cryptocurrency of XRP’s caliber.
XRP price trends and forecast
As of this writing, XRP’s price appears to be forming a significant ascending triangle pattern, which has recently breached its lower trendline.
This breakout could indicate further downward movement for XRP, but confirmation through a successful retest is still pending.
A smaller ascending triangle has also formed, breaking towards the downside—pointing towards potential vulnerability. If the retest validates the breakout, XRP may face additional drops on its price charts.
Source: TradingView
This downward breakout could also be a market manipulation tactic, which commonly occurs to drive out weaker investors from their positions.
If this is indeed the case, XRP might experience a significant rebound; however, the future price direction remains uncertain.
Liquidation dynamics and performance comparison
Examining the liquidation heatmap for XRP reveals a significant cluster of liquidity both above and below its current price.
There were nearly $1 million in leveraged XRP liquidations placed at $0.54014, with an additional $900,000 positioned at $0.51946.
This indicates that price fluctuations could go in either direction, with prices tending to move toward areas with high liquidity to stimulate further actions. Additionally, there were more than $1.2 million in liquidation orders surrounding $0.51022 and $0.50.
Source: Coinglass
This indicates that XRP’s price could swing in either direction, contingent on the market’s efforts to capture liquidity.
Additionally, the XRP Ledger network has recently experienced a surge in the creation of new pools for its Automated Market Maker (AMM), with 66% of all XRP pools established in just the past week.
In terms of ranking among leading cryptocurrencies, XRP currently sits at fifth, trailing behind Bitcoin (BTC), Solana (SOL), Ethereum (ETH), and Dogecoin (DOGE).
Source: TradingView
Notably, Solana is the only coin among the top-tier cryptocurrencies to have outperformed Bitcoin since 2021, while others, including XRP, have struggled to keep pace.
Despite the current volatility surrounding XRP’s short-term trends, the long-term outlook remains optimistic. However, specific factors must align before this positive perspective can fully develop.
Traders should proceed with caution, yet maintain an optimistic attitude, as potential upward movements may be on the horizon.
