XRP Crash Leaves Wake of Destruction Amongst Traders

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  • The price of XRP shows no sign of ending the turbulent decline sparked by the SEC’s lawsuit against Ripple for completing an unregistered security offering
  • This news sparked panic across the market, causing cryptocurrency prices to plummet, falling from over $ 0.50 before the news to lows of $ 0.20 yesterday
  • Where there are medium term trends should depend largely on developments related to that lawsuit
  • From a technical point of view, however, the cryptocurrency is currently plagued by an immense weakness that may not wear off anytime soon
  • Data on yesterday’s XRP trading activity shows the volume has increased massively and the sell-off has resulted in over $ 176 million in liquidations

XRP struggled to get buy-side support in the aftermath of news of the SEC’s lawsuit against Ripple alleging XRP was an unregistered security.

This lawsuit sparked a wave of panic and unease among XRP investors, hitting highs of $ 0.90 shortly after the parabolic rally in crypto.

Yesterday, during the height of the cryptocurrency sell-off, the price of XRP fell to a low of $ 0.21 before seeing some buying pressure.

The subsequent rebound spiked it to $ 0.30 but was rejected here and has declined since then.

The results of this move have been devastating for buyers. In total, long positions of $ 176 million were liquidated within 24 hours.

XRP struggles to gain momentum when the rebound falters

At the time of writing, XRP is trading slightly at its current price of $ 0.26. This is a notable drop from the recent highs of $ 0.90 set a few weeks ago.

The selling pressures seen in the time since the SEC news was unprecedented and even resulted in the last serious support around $ 0.30 being undone.

Here are the consequences of yesterday’s crash

According to an analyst, yesterday’s 40% drop in XRP prices came in the midst of extremely high trading volumes and resulted in the liquidation of long positions totaling $ 176 million.

This is the highest degree of liquidation in the last 8 months.

“XRP yesterday, a summary: -40% price drop -OI nuked -High trading volume: USD 10 billion for futures and USD 3 billion on site. In futs, it was the second highest trading volume – mass liquidation: USD 176 million longs were liquidated. The highest level of liquidation in the last 8 months … “

Image courtesy of Coinalyze.

Unless there are massive events in favor of XRP, the SEC lawsuit will likely be a “black swan” causing further decline.

Featured image from Unsplash. Price data from TradingView