according to the material from the site - By Thecoinrepublic.com
The week for XRP has been quite volatile, but what are the long-term consequences? At the time of publication, the coin was trading around $3.19.
In the last 24 hours, XRP has risen by 2.9% after a decline of about 9% the day before, as the rally from the beginning of the month has slowed down.
Nevertheless, the weekly gain is around 7%, and signs of weakening are starting to emerge. Consolidation is occurring, and several key on-chain and technical signals indicate that $3.21 is a critical level. If it is broken, a deeper drop could occur.
XRP exchange reserves are rising again.
The price of XRP is now trading around $3.19 after reaching a local maximum of $3.65. The previous rally showed some strength, but the situation may change now.
The first serious warning signal is the XRP exchange reserves. The CryptoQuant chart shows that reserves recently increased from about $2.9 billion to $3.5 billion. This is a jump of over $600 million in a short period.
When exchange reserves grow, it often means that more tokens are being transferred to exchanges. And why do traders need this? Usually, to sell.
Therefore, when supply on exchanges rises, it means that more people may want to withdraw them. This increases pressure on the price of XRP.
This is not what bulls want to see, especially during a correction. If this trend continues, the likelihood of a further drop increases. Traders should keep a close eye on this, as it indicates a rise in supply from sellers.
XRP liquidation clusters signal key danger zones below.
Let's take a look at the liquidation map. It shows where traders could be liquidated during a rapid price movement of XRP in either direction. Coinglass data shows that many traders betting on long positions and expecting price increases have placed their positions just below $3.20.
This means that if XRP drops below $3.21, these long positions may start to be liquidated. When liquidation occurs, exchanges forcibly sell these positions to cover losses.
This selling pressure often drives the price down even faster, similar to a chain reaction.
The heat map clearly shows a red cluster just below $3.20. If it breaks through, the price could quickly drop to the next danger zones around $2.97 and $2.66.
This means a drop of 10-15% from current levels. Above $3.40, there is also a wall of short position liquidations.
If XRP somehow rises above $3.40 on volume, it could squeeze short positions and rise again to $3.60-$3.65. However, judging by current signals, this is less likely unless bulls intervene.
XRP price patterns warn of a bearish trend.
Now let's talk about graphical patterns and price dynamics of XRP. On the daily chart, XRP has formed a bearish engulfing candle.
This is a pattern where the red candle completely engulfs the previous green one. It often marks a peak or the beginning of a downtrend, especially when formed after a strong rise. This is exactly what we are seeing.
$3.21 is not just a random number. It is a strong confluence level, indicating that several indicators point to its importance.
If the price of XRP remains above it, a bounce back to $3.40 is possible. But if it is broken, a drop to $2.90 or $2.66 could happen quickly.
#MarketRebound , #Сryptomarketnews
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