In the case of a $1 billion liquidation, XRP fell to $3.05, but whale purchases and technical signals indicate a potential breakout above $7 in the future.

Price sharply declined after market liquidation

XRP fell more than 6% in the past 24 hours, slightly rebounding after dropping to $3.00. This decline coincided with a widespread sell-off in the cryptocurrency market, triggered by over $1 billion in liquidations. This marks a new low for the asset price in over a week.

The 24-hour trading volume exceeded $11 billion, with a wave of strong selling pressure during the early hours. During this period, XRP's hourly trading volume reached 436.98 million units, setting a new quarterly high for hourly trading volume. Towards the end, buying rebounded, helping stabilize the price around $3.12.

Institutional buy signals for a new round of accumulation

Cryptocurrency analyst Crypto King also believes that XRP has moved out of the accumulation and manipulation phase. They think that the next phase, the expansion phase, is currently underway, with a target price of $7 for this cycle. Their analysis is based on chart structures and the growing interest from large investors.

On-chain data from Ali Martinez shows that in the past three days, large holders have purchased approximately 320 million XRP, with a total value of about $1 billion, supporting this viewpoint. This method of buying typically alleviates short-term selling pressure and may influence the reactions of small investors.

The price structure of XRP shifted after breaking through in mid-July. Since then, it has risen more than 66% and subsequently entered a consolidation range. Crypto King's chart outlines three phases of XRP: accumulation, manipulation, and expansion. The current price trend suggests that XRP may be entering the third phase.

Another chart shared by CryptoBull shows that XRP is exhibiting a symmetrical triangle pattern on the 4-hour timeframe. The price has retraced to retest previous resistance levels, which have now become support. This situation typically occurs in healthy market trends, where buyers enter after consolidation.

Market background and technical support

The recent decline in cryptocurrency prices is a continuation of the general downturn in risk assets. The U.S. stock market has also seen profit-taking, which could put greater pressure on the digital asset market.

Despite the pullback, Ripple's Chief Technology Officer reiterated the role of the XRP ledger in supporting the financial system. As the price approaches key support levels, traders are watching the progress of XRP's expansion layout for signs of strengthening.