XRP is reacting to general market trends as its price faces a bearish reset, leading to severe liquidation in the last hour. Per data from CoinGlass, within this period, there has been a liquidation imbalance of 4,628%.
XRP declines after brief surge above $3
Notably, traders betting long on XRP saw $159,820 wiped out within 60 minutes as the price of XRP took a plunge in value. These investors were anticipating further climbs in the price of XRP, given the bullish sentiment on the general cryptocurrency market.
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XRP, after successfully breaching the elusive $3 level, suffered volatility, likely from profit-taking, and did not find stability at that level. After peaking at $3.02, the asset plunged to a low of $2.81 as investors and market participants look determined to make gains.
As of press time, the XRP price was changing hands at $2.83, which represents a 3.53% decline in the last 24 hours. The trading volume remains in the green zone by 20.62% at $11.3 billion. However, the asset’s Relative Strength Index (RSI) at 83.56 is already signaling overbought.
With the liquidation, short position traders also recorded losses in the last hour. A total of $3,380 was recorded against those betting on a bear market for XRP.
Profit-Taking and ETF Speculation Fuel XRP’s Volatility
Analysis of the XRP ecosystem suggests that most traders went for profit-taking ahead of a possible XRP exchange-traded fund launch by ProShares. Although official confirmation is still not in, John Deaton, pro-XRP lawyer, claims it could happen on July 18.
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The initial surge in price supported the asset, flipping $3, and once breached, some investors went for profit, leading to the liquidation witnessed.
Curiously, after XRP hit the $3 level, an ecosystem whale engaged in a massive transfer of over 497.5 million XRP between two unknown wallets. The movement remains on the radar of market participants as they monitor its impact on the market.
