Key Takeaways
- XRP’s long traders could face significant liquidations if the price fails to hold its key support level of $2.
- XRP’s price consolidation continues following its failure to break above its key resistance level of $2.6.
- XRP’s fundamentals continue to rise as the price struggles to catch up despite market sentiment remaining optimistic.
The price of XRP has seen a tough trading month following its price crash from a region of $2.6, acting as key resistance for the price, preventing bulls from a rally towards a high of $3, as the price has found itself in June trading in a range for weeks now.
XRP’s price has continued its range-bound price movement around $2.3 to $2 despite gaining strong fundamental news in the past few days of a potential close to its long-standing lawsuit with the U.S. SEC that has lasted for over 5 years.
The news of the XRP spot ETF gaining approval and trading in Canada also generated much buzz. Still, it wasn’t enough to significantly impact XRP, as the price has remained in consolidation as traders and investors wait for the next price movement.
While waiting, Bitcoin’s price movement in the last few days hasn’t been encouraging. Altcoins, including XRP, could see a significant price crash if the price of BTC fails to protect its key zone of $100,000. The price has struggled to rally to the upside for days despite rebounding around this region.
With Bitcoin’s potential price crash towards $97,000, how would this impact the price of XRP and its holders, as XRP sits at a key region of $2?
XRP Holders Could See Huge Liquidations If $2 Fails
Source – XRP Liquidation Heatmap from Coinglass
XRP’s price has been in a long consolidation for weeks, as it has struggled to find bullish price action to the upside. This has left traders and investors uncertain about the direction of XRP’s next price action.
However, with BTC’s price poised to crash to lower regions, this could prompt XRP to trigger massive long liquidations around $2, as short sellers have shown significant dominance in the last few days, according to on-chain data from Coinglass.
A breakdown of the XRP price below this region of $2 could lead to many traders and investors suffering liquidation as they hold their long positions. The price of XRP stands a chance to trade towards a region of $1.6, acting as the next safe zone for buyers and a potential price rally to the upside.
The price of XRP must defend its key support zone of $2 to prevent further price decline and also provide buyers with a strong opportunity to push its price towards a higher point, potentially leading to an upside rally.
XRP’s price crashing back to $1.6 could be seen as a setback in price following its strong fundamentals across the media, as the price continues to struggle to regain its bullish price strength.
Traders, whales, and investors will be closely monitoring the price of XRP in the coming days to see how it reacts around the $2 zone.
