XRP holds just above $2.00, where nearly $450B in leveraged liquidations are concentrated.
A break below $2.00 could trigger a rapid sell-off due to liquidation pressure.
Resistance at $2.18 continues to limit XRP's upward momentum despite mild price gains.
The XRP/USDT market is showing early signs of volatility as price action now hovers precariously above a critical support zone, while data reveals a massive concentration of liquidation leverage just below the $2.00 threshold.
As of June 1, 2025, XRP trades at $2.15, posting a modest 0.8% increase over the last 24 hours. However, a heatmap from Coinglass suggests that a substantial wave of forced liquidations—estimated at $447.67 billion—could be triggered should the price breach the $2.00 mark. This setup raises concerns about the potential for a sharp and sudden price reaction.
High Leverage Cluster Beneath Support Signals Elevated Risk
According to the Binance XRP/USDT liquidation heatmap, the bulk of liquidation leverage is heavily concentrated in the $1.80–$2.00 range. These dense bands of liquidation interest act as a pressure point for the market, increasing the likelihood of a rapid move if prices fall into that zone. Traders with high leverage may be forced out of positions if the $2.00 support level fails, potentially amplifying downward momentum.
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Market analysts often interpret such high-leverage zones as areas of “liquidity traps,” where prices may be drawn due to the volume of open positions. In XRP’s case, a drop below $2.00 may cascade into large-scale liquidations, feeding further selling pressure and accelerating price declines.
XRP Stalls Below Resistance, Range-Bound Action Likely
While short-term sentiment appears neutral to mildly bullish, resistance at $2.18 remains firm. Price has struggled to maintain momentum above this level, and the lack of significant liquidation clusters above suggests weaker incentive for aggressive upside movement in the near term. Without a breakout above this resistance, XRP is likely to remain range-bound.
Outlook Hinges on Support Stability
The key level to watch remains $2.13, which serves as immediate support. A failure to hold this line could quickly shift market dynamics toward the high-risk liquidation area under $2.00. Given the concentration of leveraged positions in that zone, market participants should remain cautious as any breach could result in rapid, potentially violent price swings. XRP stands at a technical crossroads, with the next major move likely to be determined by whether or not the $2.00 barrier holds firm.
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