- 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