- XRP’s price is showing no signs of ending its tumultuous descent that was sparked by the SEC’s lawsuit against Ripple for conducting an unregistered securities offering
- This news sent panic throughout the market and caused the cryptocurrency’s price to crash, falling from over $0.50 before the news to lows of $0.20 yesterday
- Where it trends in the mid-term should depend largely on developments surrounding this lawsuit
- However, from a technical perspective, the cryptocurrency is currently plagued by immense weakness that may not let up anytime soon
- Data surrounding yesterday’s XRP trading activity shows that it saw a massive spike in volume, with the selloff leading to over $176 million in liquidations
XRP has been struggling to gain any buy-side support in the time following news regarding the SEC’s lawsuit against Ripple, which alleges that XRP is an unregistered security.
This lawsuit created a wave of panic and unease amongst XRP investors and came about shortly after the crypto’s parabolic rally to highs of $0.90.
Yesterday, during the peak of the cryptocurrency’s selloff, XRP’s price nuked to lows of $0.21 before it was able to find some buying pressure.
The subsequent rebound led it up to $0.30, but it was rejected here and has been sliding lower ever since.
This movement’s results have been devastating for buyers, with a total of $176 million in long positions being liquidated over a 24-hour time frame.
XRP Struggles to Gain Momentum as Rebound Falters
At the time of writing, XRP is trading up marginally at its current price of $0.26. This marks a notable decline from its recent highs of $0.90 set just a few weeks ago.
The selling pressure seen in the time since the SEC news has been unprecedented and even caused it to shatter the last serious support it had around $0.30.
Here’s the Aftermath of Yesterday’s Crash
According to one analytics firm, XRP’s 40% price decline yesterday came about in the midst of ultra-high trading volume and led to a total of $176 million worth of long positions to be liquidated.
This is the highest level of liquidations seen over the past 8 months.
“XRP yesterday, a summary: -40% price drop -OI nuked -High trading volume: $10 bln on futures and $3 bln on spot. On futs, it was the second highest trading volume -Mass liquidation: $176 mln longs got liquidated. The highest level of liquidations over the last 8 months…”
Image Courtesy of Coinalyze.
Unless there’s some massive turn of events that work in XRP’s favor, the SEC lawsuit will likely be a “black swan” that causes a continued descent.
Featured image from Unsplash. Pricing data from TradingView
