According to Coinglass, if Ripple’s (XRP) price hits $0.60, it could lead to some serious losses in open contracts. This price is seen as the highest liquidation level for XRP.
Right now, XRP is trading at $0.52. That’s down from $0.60 at the beginning of October. This analysis not only points out potential liquidation levels but also looks at whether the altcoin can bounce back.
The liquidation map shows that XRP’s price movement has led traders to open short contracts worth $28.40 million. A liquidation map helps traders spot levels where big positions might have to close due to margin calls.
To give you some context, a short contract means traders expect the price of a cryptocurrency to drop. On the flip side, long contracts, which predict price increases, total $10.50 million. This big difference indicates a bearish sentiment among traders. It highlights the risk of significant liquidation if XRP’s price sees a strong rebound.
However, looking at the Ichimoku Cloud, we see that the altcoin is facing some resistance that could slow down a quick recovery. The Ichimoku Cloud provides a clear view of market trends and helps identify support and resistance levels.
When the cloud is above a cryptocurrency’s price, it signals a bearish trend. If it’s below, that’s a bullish sign, suggesting strong support. Right now, the cloud is above XRP’s price, which means reaching that liquidation price might be tough in the short term.
Examining the XRP/USD pair, it’s clear that the token has dropped below key Exponential Moving Averages (EMA). The 20-day EMA (in blue) and the 50-day EMA (in yellow) are both above XRP’s price.
Typically, when the price falls below these indicators, it suggests a bearish trend. Plus, the longer EMA being above the shorter one indicates that XRP might continue its recent downward trend.
If this keeps up, XRP’s price could drop to $0.49. On the other hand, if it breaks above the $0.55 resistance level, that could activate the previously mentioned liquidation price in the short term.