XRP price briefly dropped below $2 yesterday after the crypto market crashed, wiping out nearly $1 billion in total liquidations. Ripple (XRP) has since recovered above $2, but as selling activity remains strong, investors remain anxious about whether now is the right time to buy XRP.
Ripple price today trades at $2.09 after a 4% decline in 24 hours with an intra-day low of $1.92.
XRP Price Holds Above $2 Amid Surging Liquidations
XRP price has been holding levels above $2 despite the crypto market crashing. However, rising long liquidations have exerted additional sell-side pressure on the price. Data from Coinglass shows that in the last 24 hours, more than $37M in long positions on XRP were liquidated.
XRP’s liquidation map further shows that if the XRP price were to fall below $2 again and breach its multi-month support level of $1.95, more than $62M of open long positions would be liquidated, causing another long squeeze.
Besides this looming liquidation risk, concerns also emerged after a whale address moved over 167M XRP tokens during the crash. This transfer sparked fears of a looming sell-off that may push the XRP price lower.
XRP Head and Shoulders Pattern Emerges – Time to Buy Ripple?
XRP price has established support at $1.95, a level that it has defended multiple times. Buyers have consistently stepped in at this price, which also happened yesterday, forcing Ripple to move back above $2. As long as this support level holds, Ripple still has a chance meet its bullish XRP price prediction target.
However, a bearish head and shoulders pattern has emerged on Ripple’s one-day chart. This pattern hints at a trend reversal from bullish to bearish. The neckline of this pattern is at the critical support of $1.95.
If buyers fail to defend this level and XRP price falls below the 200-day SMA of $0.87, it could see a steep decline that is equal to the height of this pattern. This will cause the price to fall to $0.50. Such a steep decline will wipe out all the gains made in late 2024.
The MACD shows a bearish momentum as this line falls further in the negative region. The MACD histogram bars also show that the selling pressure is strong, which also shows a grim outlook.
As the downward pressure intensifies as the risk of more long liquidations still looms, there is a chance that the XRP price may once again drop to $1.95. If this resistance fails to hold firm, it could spark a steep price decline, making this not the right time to buy Ripple unless the broader crypto market sentiment changes.
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