The recent market trends have shown a significant increase in long liquidations for XRP bulls, with $1.27 million being liquidated from their long positions. This spike of 6,350% in long liquidations indicates a general sentiment of bearishness in the XRP ecosystem. Data from Coinglass reveals that the long positions liquidated in the last 24 hours far surpass the short positions liquidated during the same period. This surge in liquidations can be attributed to the 3.85% drop in XRP’s price, plummeting to as low as $0.51 within hours.
Decline in Trading Volume
The decline in XRP’s price is not the only concern for investors, as there seems to be a bearish sentiment prevailing in the XRP derivatives market as well. Trading volume has dropped by over 26%, and options trading volume has also seen a significant decline of over 46%. These figures indicate that a large number of XRP investors are choosing to remain on the sidelines, waiting for a more favorable market sentiment. However, there has been a slight uptick in open interest, suggesting that some bulls are still willing to take a risk on the crypto token.
Analysts’ Predictions and Legal Battle
Despite the current bearish trend, some analysts remain optimistic about XRP’s potential for growth. Crypto analyst Jonathan Carter has predicted that XRP could rise to $0.93 and further to $1.68, highlighting the possibility of significant moves in the near future. There is also a consensus among analysts that an XRP rally could be imminent, given the long-overdue upward momentum in the market.
Additionally, the ongoing legal battle between the Securities and Exchange Commission (SEC) and Ripple is expected to come to a resolution soon, which could potentially have a significant impact on the future of XRP. With a ruling expected in the near future, the outcome of this legal battle could either pave the way for a bullish rally or further fuel the bearish sentiment in the market.
The recent bearish trend in the XRP market, coupled with the increase in long liquidations and decline in trading volume, raises concerns about the future prospects of the crypto token. While there are some bullish indicators such as an increase in open interest and analysts’ optimistic predictions, the outcome of the legal battle with the SEC remains a crucial factor in determining XRP’s trajectory in the coming months. Investors and traders should carefully monitor the market trends and developments to make informed decisions regarding their XRP holdings.
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