The crypto market saw liquidations of $657 million in the past 24 hours, as Bitcoin (BTC), Ethereum (ETH), and XRP prices dropped by 3.89%, 4.20%, and 6.49%, respectively. Bitcoin’s rejection at a key technical level exacerbated the sell-off. Due to XRP’s high correlation with BTC, it faced a similar drop today.
As a result of today’s crash, the XRP Open Interest (OI) has dropped $140 million in the past 17 hours, according to VeloData. This flush in OI indicates that overleveraged positions were culled from the market, creating a favorable buying opportunity.
A 7% drop in the past 12 hours caused $23 million in XRP long liquidations. This sudden nosedive ended the 18-day range tightening that XRP underwent, creating lower highs and lower lows. Connecting the trend lines with swing points reveals a falling wedge pattern. Generally, falling wedges offer a bullish breakout opportunity, but the recent crash has done the opposite due to Bitcoin’s crash.
Regardless, the nosedive in crypto markets has caused XRP price to revisit a key support level at $2.139. Considering that this support is the highest traded volume level on May 4, which led to an 18% rally, a retest of this level is likely to provide a stable support level. Absorption of selling pressure in this area could lead to a bottom formation here.
Will XRP price crash halt here? From a technical standpoint, the chances are in favor of bulls. However, Bitcoin’s outlook remains bearish as noted by CoinGape’s previous coverage. Hence, investors should watch for a BTC recovery rally to confirm a potential bottom formation for XRP. A failure to hold above $105K could lead to a steep correction for BTC, including a revisit of $ 100,000.
In such a case, the high correlation with BTC will cause XRP price to follow Bitcoin’s footsteps and crash lower. Investors can expect a retest of the $2 psychological level under these bearish conditions.
Akash Girimath
Senior Cryptocurrency Analyst & Market Strategist
Engineer-turned-analyst Akash Girimath delivers data-driven insights on cryptocurrency markets, DeFi, and blockchain technology for platforms like AMBCrypto and FXStreet. Specializing in technical analysis, on-chain analytics, and risk management, he empowers institutional investors and retail traders to navigate market volatility and regulatory shifts.
A hands-on strategist, Akash merges active crypto portfolio management with research on Web3, NFTs, and tokenomics. At AMBCrypto, he led cross-functional teams to redesign content frameworks, achieving record-breaking traffic growth through scalable editorial strategies. His analyses dissect market sentiment, investment strategies, and price predictions, blending macroeconomic trends with real-world trading expertise.
Known for mentoring analysts and optimizing workflows for high-impact reporting, Akash’s work is cited across global crypto publications, reaching 500k+ monthly readers. Follow his insights on YouTube, X, and LinkedIn for cutting-edge perspectives on decentralized ecosystems and crypto innovation.
Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
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