- Amidst Bitcoin’s bloodbath, Ripple’s XRP has teetered on the edge of a cliff.
- As XRP faces mass liquidations, investors have questioned its resilience.
- Despite a massive market sell-off, XRP has shown signs of strength.
As the cryptocurrency market grapples with fresh turmoil, Ripple’s XRP finds itself in the eye of the storm. With Bitcoin’s recent plunge sending shockwaves across the digital asset landscape, XRP is caught in the crossfire. The big question is whether Ripple’s token can hold its ground or is on the brink of losing its luster amid rising tensions and shifting market dynamics.
Ripple’s XRP has been experiencing volatility lately, and the ride hit a major bump when Bitcoin’s recent crash sent shockwaves through the crypto market. The fallout? A staggering $3.58 million in longs were liquidated on September 6, raising serious questions about the token’s strength and resilience.
XRP Holds Strong Despite Sell-Off
Investors have been quick to cash out, as highlighted by Santiment’s Net Realized Profit/Loss indicator. On September 1, a massive sell-off of 353 million XRP took place, with investors scrambling to lock in profits. Despite this aggressive profit-taking and the broader crypto market slump, XRP has only shed 4%, suggesting a flicker of resilience amid the chaos.
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But is this resilience enough to keep the interest alive? The charts tell a mixed story. September 6 saw the cryptocurrencies price drop by 4.28%, dragging it to a crucial support level. While the Relative Strength Index (RSI) shows a glimmer of hope with higher lows, the question remains whether this indicator can stave off a deeper decline.
Technical indicators offer a glimmer of optimism. The yearly Volume-Weighted Average Price (VWAP) at $0.503 has so far provided a solid floor for XRP. However, this support could be fragile if market conditions worsen.
XRP’s Tightrope Walk Between Gains and Losses
Investors should watch key levels closely. The immediate resistance points are the yearly VWAP at $0.561 and its upper limit at $0.619. Surpassing these could lead to 6% and 20% short-term gains, respectively, from the current price of $0.529. In a bullish scenario, overcoming the $0.635 resistance could push XRP towards $0.716.
However, the potential downside is equally grim. If it falls below the $0.503 VWAP, the bullish thesis collapses, and the token could drop sharply to around $0.469. With market sentiment shifting and with the cryptocurrency facing mounting pressures, its immediate future appears uncertain.
On the Flipside
- XRP’s loss of 4% is relatively minor compared to more severe declines in other cryptocurrencies.
- The yearly VWAP support at $0.503 provides a buffer against significant drops.
- The $3.58 million in XRP long liquidations suggests a robust market presence capable of handling high trading volumes.
Why This Matters
Ripple’s XRP is at a critical juncture as it navigates the fallout from Bitcoin’s recent crash and a significant liquidation event. This highlights its precarious position amid the broader market turmoil. This turbulence could redefine investor confidence in XRP, affecting its short-term stability and long-term potential as it tests crucial support and resistance levels.
To learn more about the recent whale activity and its impact on Bitcoin’s price, read here:
Why Experts Predict Bitcoin Could Drop Below $50,000 Soon
To learn more about the legal battle between Ripple and the SEC, and the recent large XRP transactions, read here:
Ripple’s $54M XRP Move Stirs Panic: Is the SEC About to Strike?
