๐ XRP Dips to Start August โ But Seller Weakness May Spark a Bounce
Risk-off mood pushes XRP over $3.00 from $2.89 intraday low.
XRP's spot volume is flat after the sell-off from its record high last week, reflecting seller weariness.
XRP may bounce due to massive derivatives market liquidations and a short squeeze.
Ripple (XRP) has struggled to rebound after three days of downturn. The cryptocurrency market sell-off left many investors and traders calculating losses, with XRP selling at $2.98, 19% below its July 18 record high of $3.66.
XRP falls below $3.00 as liquidations rise.
After the long correction from the all-time high, XRP derivatives are unstable. Over the previous 24 hours, CoinGlass data shows $41.4 million in liquidations, with long position holders accounting for $39 million.
The ensuing reduction in futures OI and volume highlights XRP's upside-heavy structure, which might restrict the price in future sessions.
All outstanding futures and options contracts average $8.13 billion, down 26% from July's $10.94 billion top. This indicates fewer traders are speculating on XRP price hikes.
After reaching 88 in overbought territory, the RSI is slightly below the midline, indicating decreasing purchasing pressure. If investors maintain risk-off mentality in the cryptocurrency market, the downturn might reach the 50-day Exponential Moving Average (EMA) around $2.77.
Support around $2.77 or the 50-day EMA, the $3.00 zone, and resistance at $3.32 will be important in subsequent sessions. An XRP break on either side of this range might define its August direction.
Low spot trading volume, at $168 million, shows seller tiredness. Thus, speculative demand may boost XRP price, confirming the optimistic forecast for the record high.
CryptoQuant's XRP Spot Bubble map supports the spot volume decline. Low trading volume indicates dwindling liquidity with fewer buyers and sellers. XRP may stabilize at $3.00 before moving upward.