XRP’s recent rally has hit a major roadblock after the cryptocurrency saw one of its biggest single-day drops since the “Uptober” rally started. The sudden 5% fall wiped out many heavily leveraged long trades and even pushed XRP out of the top three cryptocurrencies by market value, showing that market sentiment is quickly turning negative.
Liquidation imbalance surges 4,335% as longs unwind
The technical caution coincides with a wave of heavy liquidations in the XRP market. Data from Coinglass shows that XRP’s hourly liquidation imbalance suddenly spiked by 4,335% after the sharp drop in its price. In the last hour alone, $8.14 million worth of positions were liquidated. Long positions suffered the most, with $7.96 million wiped out, while short positions saw just $179,430 in losses.
The broader data reveals how large the losses have been over different time periods. In the past hour, $38.32K was liquidated, including $34.28K from longs and $4.04K from shorts. Over four hours, total liquidations reached $3.43 million, with $3.27 million from longs and $155.42K from shorts.
Over 12 hours, $7.25 million was wiped out, including $6.72 million in longs and $523.13K in shorts. Over 24 hours, total liquidations hit $25.95 million, with $23.62 million from longs and $2.33 million from shorts.
Descending triangle raises bearish concerns
Well-known trader Peter Brandt pointed out a possible bearish pattern forming on XRP’s price chart. In a post on X, Brandt shared a classic descending triangle pattern from Edwards and Magee, showing how such structures typically lead to breakdowns.
On XRP’s chart, he noted that “only if it closes below $2.68743 (then I’ll be a hater), then it should drop to $2.22163.” The warning suggests a decisive close below that level could open the door for a deeper correction.
XRP loses place from top 3 position as price falls below $3
Just a day after surpassing BlackRock in market capitalization, XRP’s fortunes reversed sharply. The asset plunged over 4% in a single hour and fell 5.16% in the past 24 hours, trading around $2.88 at press time, down from an intraday high of $3.05. Its market capitalization also dropped by more than 5%, causing it to lose its third-place ranking to BNB, which hit multiple all-time highs within the same period.
With investors questioning XRP’s ability to revisit its 2018 peak of $3.84, the $2.68743 support level has become a key line to watch. A breakdown below it could confirm Brandt’s bearish outlook and potentially push the price closer to $2.22163.
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