- XRP price shows no signs of ending the tumultuous decline sparked by the SEC’s lawsuit against Ripple for executing an unregistered securities offering
- This news sparked panic in the market and caused the cryptocurrency’s price to crash, from above $ 0.50 before the news to lows of $ 0.20 yesterday.
- Where it develops in the medium term should largely depend on the developments surrounding this lawsuit
- However, from a technical perspective, the cryptocurrency is currently plagued by a massive weakness that may not go away anytime soon.
- Data on yesterday’s XRP trading activity shows it saw a massive spike in volume, with the sell-off leading to more than $ 176 million in liquidations
XRP has struggled to gain buy-side support over time following news of the SEC’s lawsuit against Ripple, which claims that XRP is an unregistered security.
This lawsuit sparked a wave of panic and unease among XRP investors, emerging shortly after the cryptocurrency’s parabolic rally to a high of $ 0.90.
Yesterday, during the peak of the cryptocurrency’s sell-off, the price of XRP fell to lows of $ 0.21 before it could find any buying pressure.
The subsequent rebound took it to $ 0.30, but it was rejected here and has since fallen lower.
The results of this move have been devastating to buyers, with a total of $ 176 million in long positions being liquidated within 24 hours.
XRP struggles to gain momentum if rebound falters
At the moment of writing, XRP is trading marginally at the current price of $ 0.26. This marks a notable decline from the recent highs of $ 0.90 reached a few weeks ago.
Selling pressure in the time since the SEC news has been unprecedented, even causing the last serious support it had to shatter around $ 0.30.
Here’s the aftermath of yesterday’s crash
According to one analysis company, XRP’s price drop by 40% yesterday came amid ultra-high trading volume and resulted in a total of $ 176 million in long positions to be liquidated.
This is the highest level of liquidations in the past 8 months.
XRP yesterday, recap: -40% price drop -OI nailed -High trading volume: $ 10 billion on futures and $ 3 billion on the spot. On futs, it was the second highest trading volume – massive liquidation: $ 176 mln longs were liquidated. The highest number of liquidations in the past 8 months … “
Image Courtesy of Coinalyze.
Unless there is a huge turn in events The favor of XRP, the SEC lawsuit will likely be a “black swan” causing an ongoing descent.
Featured image from Unsplash. Pricing data from TradingView