XRP, the native token of the XRP Ledger, has seen a sharp 15% price drop as $2.4 billion in open interest liquidated. This sudden decline has sent shockwaves through the crypto market. But what’s behind this drop, and is a rebound possible? Let’s dive into the details.
XRP Price Drops 15%: What Triggered the Sell-Off?
The XRP price fell from $3.65 on July 18 to around $3.09, marking a 15% correction. This drop coincided with a massive $2.4 billion decline in open interest, signaling widespread liquidations. Key factors include:
- Leveraged positions unwinding rapidly
- Shift in speculative trader sentiment
- High volatility in the derivatives market
Whale Activity: Are Big Players Buying the Dip?
On-chain data reveals whales accumulated 60 million XRP in a single day, suggesting strategic buying. Key takeaways:
- Transfers to exchanges dropped over 90%
- Institutional confidence may be building
- Potential for price stabilization
Technical Analysis: Can XRP Recover?
XRP remains above the critical $3.00 support level. Technical indicators show:
- 20-day EMA providing near-term support
- MACD still bearish
- $3.30-$3.35 resistance zone crucial for breakout
Macro Factors Impacting XRP’s Future
Broader market conditions could influence XRP’s trajectory:
- U.S.-EU trade agreement boosting risk appetite
- Crypto regulatory bills gaining traction
- Institutional investors opening new long positions
FAQs
Why did XRP price drop 15%?
The drop was triggered by $2.4 billion in open interest liquidations and leveraged position unwinding.
Are whales buying XRP during this dip?
Yes, on-chain data shows whales accumulated 60 million XRP in a single day.
What’s the key support level for XRP?
$3.00 is currently acting as major support, with the 20-day EMA providing additional stability.
Could XRP rebound soon?
A breakout above $3.30-$3.35 resistance could trigger a retest of recent highs.
How does open interest affect XRP price?
High open interest increases volatility risk, as seen in the recent liquidations.
