XRP Price Downtrend In April Forces $10M Worth Of Liquidations
NOIDA (CoinChapter.com) — XRP has not had a good year, especially compared to its peers, so XRP’s downtrend in April is not that surprising. The US Securities and Exchange Commission’s favorite prey saw its value drop sharply after a tough start on April Fools’ Day, followed by massive liquidations.
XRP price is down more than 10% MTD in April, forming a daily low near $0.57 on April 3 before recovering slightly. The Ripple token’s dismal performance over the past few months has traders asking if they should buy XRP tokens.
Long Liquidations Hit XRP Bulls
XRP’s troubles in April began when Bitcoin’s price fell below $67,000, causing a ripple effect that dragged the Ripple token down with it. XRP’s correlation with BTC means the two tokens usually share fates. Yet, while BTC has formed several new ATHs since 2017, XRP has failed to revisit its past glory days.
XRP’s downtrend in April wiped out traders who had bet that the Ripple token’s price would rally, wiping nearly $9.8 million in long positions between April 1 and April 3. In comparison, short positions only suffered liquidations worth $0.59 million, highlighting the bearish outlook prevalent against XRP.
Moreover, on April 1, the whale transaction tracking account Whale Alerts shared that Ripple unlocked 500 million XRP tokens from escrow, while a whale wallet moved 24.70 million XRP to Bitstamp, and another 100 million XRP changed hands between unknown wallets.
Though Whale Alert later shared that Ripple secured 800 million XRP in escrow, potentially decreasing the token’s active supply, XRP price failed to rally.
Despite the XRP price downtrend, investors remained hopeful for a price increase, visible from the token’s positive funding rate. Furthermore, independent crypto analyst ‘EGRAG CRYPTO‘ has prophesized a $27 price level for XRP, a price label 670% higher than the token’s current ATH.
Talk about strong hopium! Maybe it is Hopcain.
XRP Struggling To Hold Above Trendline Resistance
The XRP token price is testing a multi-week ascending trendline support. Breaking below the trendline resistance can trigger more liquidation for the Ripple token in April.
A confirmed break below the trendline could attract bears to the market, which could push the XRP price to the support level near $0.55.
Breaching the immediate resistance would confirm the downtrend, liquidating more long positions while attracting short traders to open positions with a target near $0.503.
On the other hand, a rally from here would bring XRP price close to the resistance near $0.62. Flipping the immediate resistance could create circumstances for a short squeeze, helping the Ripple token jump to the resistance near $0.66 before retreating.
The RSI for XRP remained neutral, clocking at 41.62 on the daily charts.
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Filed under: Bitcoin - @ April 4, 2024 12:44 am