XRP Price Crash! 70 Million Liquidation Wave Approaches, $1.60 Becomes the Defense Line

XRP encounters a new wave of selling pressure, currently trading near $1.70, down approximately 2.5% in the past 24 hours. Futures market liquidations exceed $70 million, mostly from bullish long positions. Technical indicators show that the downward trend line remains in control of the price movement, with $1.64 and $1.60 becoming the next key support levels. Market sentiment remains weak, and Bitcoin’s lack of upward momentum further suppresses XRP’s rebound potential.

$70 Million Liquidation Wave Deals a Heavy Blow to Bulls’ Confidence

The recent correction triggered over $70 million in XRP futures liquidations, primarily affecting long positions. In simple terms, many traders expected a rebound and established leveraged long positions, but when XRP broke below critical support levels, exchange systems automatically triggered forced liquidations, closing these positions to protect against losses.

When XRP fell below the support zone around $1.75, margin calls accelerated the decline. This cascade of liquidations often causes sharp price swings, as the sell-off is not driven by fundamental changes but by self-reinforcing leveraged trading. The forced liquidation of long positions converts into market sell pressure, further pushing prices down and triggering more liquidations, creating a vicious cycle.

This also explains why XRP’s price struggles to stabilize quickly after the initial drop. Normal market corrections usually find natural buying support at certain levels, but liquidation-driven sell-offs are mechanical, not based on valuation judgments; they execute as soon as the price hits the liquidation line. Such technical selling often pushes prices into oversold territory, creating short-term distortions.

Key Points from Liquidation Data

· Most liquidations stem from long positions, indicating traders remained optimistic before the correction

· Forced selling exacerbates market volatility, rather than traders naturally taking profits

· Leverage ratios are decreasing but have not yet been fully eliminated from the market

· Concentrated liquidations reveal clear stop-loss clustering

Currently, XRP appears to still be in a correction phase rather than preparing for a strong rebound. The rapid return of downward momentum is particularly noteworthy, indicating market fragility. Buyers remain on the sidelines, with each minor rebound quickly met with additional sell-offs, showing a lack of genuine buying support.

Weak Bitcoin Dragging Down the Overall Crypto Market

XRP’s weakness is part of a broader trend. Bitcoin’s sluggish price action has led the entire crypto market to adopt a more cautious stance. As the market leader, Bitcoin’s behavior often dictates overall risk appetite. When Bitcoin lacks clear upward momentum, traders tend to reduce their altcoin exposure, especially for those already under pressure.

This market structure puts XRP under dual pressure. On one hand, its technical weakness undermines holder confidence; on the other, Bitcoin’s sideways movement discourages new capital from flowing into higher-risk altcoins. In this environment, even short-term rebounds in XRP tend to lack sustainability, as they lack support from the broader market.

Meanwhile, there are hardly any signs of active dip-buying. Spot demand appears weak, with many investors waiting for clearer signals before re-entering. On-chain data shows reduced large transfer activity and no significant increase in exchange net inflows, indicating a lack of buying interest.

Until overall market confidence improves, XRP’s price may remain sensitive to further declines. In this environment, any negative news or technical breakdowns could trigger new sell-offs, while positive news has limited impact. Traders should closely monitor Bitcoin’s price action, as it often serves as a leading indicator of XRP’s ability to stabilize and rebound.

Technical Indicators Point Strongly Toward $1.60 Test

(Source: Trading View)

From the 4-hour chart, XRP shows a strongly bearish technical structure. The price continues to make lower highs and lower lows, following a clear downtrend line, with limited rebound space since mid-January. Each time the price touches the downtrend line, it faces selling pressure, indicating strong resistance from this trend line.

XRP has broken below the $1.73 level, which coincides with the 1.618 Fibonacci extension level—a key technical hurdle. Fibonacci extensions are commonly used to project potential downside targets; once the price breaks below an extension level, it often continues toward the next one. The focus has shifted to lower support levels at $1.64 and $1.60.

Currently, XRP is slightly above $1.64, overlapping with the 2.272 Fibonacci extension. This area may see a brief rebound as some traders attempt to buy the dip near round numbers, but in a strong downtrend, such support levels rarely mark a true bottom. Historical experience shows that in a clear downtrend, support at round numbers often only provides short-term relief before prices seek deeper support levels.

If the price breaks below $1.64, it could test the $1.60 to $1.59 zone. This area overlaps with the 2.618 Fibonacci extension and previous liquidity zones, making it a more defensible support band. $1.60 is a psychological level and a price point with historically high trading volume, so stronger buying interest may emerge here.

Momentum indicators continue to support the bearish outlook. The Relative Strength Index (RSI) remains below 40 and approaches oversold territory but has not yet shown bullish divergence. RSI below 40 indicates persistent selling pressure, and the lack of divergence suggests that even if prices make new lows, momentum decline has not yet reversed. This points to ongoing weakness rather than an imminent end to the decline.

From volume analysis, downward moves are accompanied by higher volume than rebounds, further confirming dominant selling pressure. A healthy bottoming process typically involves volume increasing at lows and price stabilization, which has not yet occurred.

Rebound Needs to Break Key Resistance Levels

For market sentiment to improve, XRP must regain lost ground. First, the price needs to rise above $1.75 to $1.78, a recent support-turned-resistance zone. Only a breakout here can confirm bulls’ ability to reverse the trend. Subsequently, XRP must challenge higher resistance around $1.86, where the downtrend line intersects with previous highs.

Until these breakouts occur, caution is advised on the technical front. The next critical support level is $1.60; if this level fails, a deeper correction could ensue, with potential targets down to $1.50 or lower.

For traders, current strategies depend on risk appetite. Conservative investors may wait for clear trend reversal signals, such as RSI bullish divergence or a breakout of the downtrend line with volume confirmation. Aggressive traders might look for short-term buying opportunities near $1.60 but should set strict stop-losses due to the high risk of further declines in a downtrend.

In the coming days, XRP’s price will depend on several key factors: whether Bitcoin can stabilize and rebound, whether the $1.64 support holds, and whether large buy orders appear. Until these factors clarify, cautious observation remains the wisest approach.