One of the prominent examples of recent fluctuation in the cryptocurrency market was experienced on the XRP side. While the price recently dropped below the $1.40 level, the stronger sales during the day, especially in the last hours, attracted attention. Particularly high volume transactions signaled that compulsory liquidations were coming into effect in the market.
Increase in volatility and selling pressure
The XRP price has lost approximately 2.7 percent in the last 24 hours. The price continued its decline, which started at $1.40 throughout the day, falling to around $1.36. The hardening of price movements, especially in the last hours of the session, led to a noticeable jump in volume.
While it is considered that the sharp decline in question was largely due to liquidations, the price’s shift below the $ 1.36 support at the end of the day increased the downward pressure on XRP in the short term. On the other hand, the voluminous and sudden sales in the market in recent hours pointed out that strong support areas remained weak.
Looking at price movements, in the short term, XRP is trading in a very narrow band between $1.35-1.37. The fact that the recent low levels could not be maintained technically strengthened the view that the sales could continue.
Strengthened leverage and critical level thresholds
As volatility increases in the market, it appears that traders continue to add positions. The rise in leveraged transactions created a basis that could trigger possible new fluctuations with the opening of new positions, even if the price dropped.
In particular, the $1.35 level has now started to stand out as a critical support point. The price remaining above this threshold currently supports a horizontal movement in the short term. However, a possible downside break could start a new decline that could push the price down to $1.30.
The possibility of an upward recovery depends on the price rising above $1.40 again. Failure to exceed this level in the short term means that selling pressure will continue. In the technical view, the volatility first narrowed and then accelerated, indicating that XRP had entered a period in which direction would be determined.
