XRP faced intense market pressure on April 30, briefly dropping to a low of $2.15 and triggering a massive liquidation imbalance. According to data from Coinglass, over $13.9 million in long positions were liquidated in just 24 hours, compared to only $1.49 million in shorts a staggering 1000% imbalance that underscores a strong bullish bias among traders.
This kind of liquidation spike often occurs when too many leveraged long positions accumulate and are forcefully closed during a price dip, creating a cascading effect that pushes prices even lower. Following the sell-off, open interest dropped by 4%, suggesting that many traders chose to exit the market entirely, further intensifying the volatility.
A Temporary Flush or a Warning Sign?
Despite the rapid drop, XRP has since recovered to a psychological support zone near $2.20. Some market participants interpret the move as a healthy “flush” to remove weak hands before a potential reversal. However, others remain cautious, warning that if the price dips again, it could lead to another round of liquidations and deeper losses due to the lingering long bias.
The timing of the decline caught many traders off guard, as sentiment around Ripple and XRP had been generally positive. Earlier this year, the SEC paused its appeal in the ongoing lawsuit against Ripple, potentially opening doors for U.S. bank partnerships. Additionally, Ripple’s new stablecoin RLUSD recently surpassed $300 million in market cap, and over ten firms have applied for XRP spot ETFs, with analysts predicting up to 80% likelihood of approval.
Technical Picture: Key Levels and Momentum Signals
From a technical perspective, XRP is now trading in a tight range between $2.15 and $2.30. The Relative Strength Index (RSI) stands at 52.47, indicating a neutral market sentiment. Most indicators lack a strong trend, but there is slight bullish momentum according to the Moving Average Convergence Divergence (MACD), which has started to point upward.
Shorter-term estimated moving averages 10, 20, and 30-day EMAs are currently in buy territory. Meanwhile, longer-term indicators like the 200-day SMA and EMA remain bullish, offering solid support around the $2.00 level.
What’s Next for XRP?
If XRP manages to hold above the $2.15–$2.20 zone and break above the $2.30 resistance, it could mark the beginning of a new uptrend. Such a move would align with recent bullish fundamentals and ETF optimism. On the flip side, a drop below $2.15 may trigger another wave of liquidations, especially given the current leverage imbalance in the market.
For now, XRP remains in a fragile state, caught between promising macro developments and short-term technical risks. Traders will be watching closely to see whether it can build on this support or if further volatility lies ahead.
