11th January 2025 – (New York) XRP, the cryptocurrency linked to Ripple Labs, has encountered challenges in recent days. According to data from on-chain analytics firm Coinglass, approximately $35.96 million worth of XRP is at risk of liquidation due to prevailing market sentiment. The XRP exchange liquidation map indicates critical liquidation levels at around $2.231 on the downside and $2.36 on the upside, with current market conditions suggesting that traders are significantly over-leveraged at these points.
If the price drops to $2.231, nearly $36 million in long positions could be liquidated. Conversely, a price rise to $2.36 could lead to approximately $67.63 million in XRP facing liquidation, reflecting a bearish outlook for XRP holders. Currently trading around $2.28, XRP has seen a decline of over 1.35% in the last 24 hours, alongside a 31% drop in trading volume, indicating that traders and investors are hesitant to establish new positions amid the uncertain market climate.
Recent price movements have formed a bearish head-and-shoulders pattern on the daily chart. If XRP fails to maintain the neckline of this pattern and closes below $2.24, there is a strong likelihood of a further drop of about 5% to around $2.12, potentially triggering significant liquidation of long positions. However, if the price holds above this level, a rebound could occur, offering some hope for a bullish turnaround.
In the broader XRP ecosystem, a new price conversion calculator has been launched to assist users in converting XRP into various fiat currencies, simplifying transactions for traders. Additionally, Ripple’s RLUSD stablecoin is now integrated into the DeFi landscape through a partnership with Chainlink, enhancing its utility and market reach. Recently, negative funding rates for XRP have emerged, indicating a bearish sentiment as short sellers gain confidence. Ripple also made headlines by transferring $682 million worth of XRP to an unidentified wallet, sparking speculation about its strategic intentions. Furthermore, all banks in Japan are set to adopt Ripple’s XRP Ledger by 2025, a move anticipated to revolutionise cross-border payments.
