XRP Price Forecast: $70M Liquidated as XRP Hits $1.70 – Is $1.60 on the Horizon?

XRP is experiencing increased selling pressure, currently trading near $1.70 following another decline. The token has fallen approximately 2.5% over the past day and is struggling to find stability after its recent drop. The rapid re-emergence of downward momentum is particularly striking.

This indicates that the market remains delicate. Buyers are hesitant, and each minor rally is swiftly countered by further selling. At this moment, XRP appears to be in a corrective phase rather than gearing up for a robust recovery.

$70 Million in Liquidations Impact Bullish Traders

The recent downturn triggered over $70 million in XRP futures liquidations, predominantly affecting long positions. In simple terms, numerous traders had positioned themselves for a rebound, and when the price fell below critical levels, forced selling ensued.

As XRP slipped beneath nearby support zones, margin calls intensified the decline. Such a liquidation cascade often leads to exaggerated price movements, where selling perpetuates itself rather than indicating a sudden shift in fundamentals. This also clarifies why the price struggled to stabilize quickly after the initial drop.

Here are the key takeaways from the liquidation data:

• The bulk of liquidations originated from long positions, indicating traders were still hopeful.
• Forced selling increased market volatility, rather than traders naturally taking profits.
• Leverage is decreasing, but it hasn’t been entirely eliminated from the market yet.

Weak Bitcoin Keeps Risk Appetite Low

XRP’s weakness is part of a broader trend. Bitcoin’s sluggish price movement has made the overall crypto market more cautious. When Bitcoin isn’t rising, traders generally reduce their exposure to altcoins, especially those already under stress.

Simultaneously, there’s scant evidence of vigorous dip-buying. Spot demand seems weak, indicating that many investors are waiting for clearer signals before re-entering the market. Until overall market confidence improves, XRP is likely to remain sensitive to downward pressures.

XRP Technical Picture Suggests $1.60

On the 4-hour chart, XRP’s price prediction is decidedly bearish as XRP continues to register lower highs and lower lows, adhering to a distinct downward trendline that has constrained recoveries since mid-January. The price has fallen below the 1.618 Fibonacci extension near $1.73, drawing attention to lower support levels.

XRP Price Chart – Source: Tradingview

XRP is currently just above $1.64, aligning with the 2.272 Fibonacci extension. This zone may offer a brief respite, but it typically does not serve as a bottom during a pronounced downtrend. If the price dips below $1.64, it could trend toward $1.60 to $1.59, where the 2.618 extension and previous liquidity are located.

Momentum continues to support a bearish perspective. The RSI remains below 40 and is approaching oversold conditions, with no indication of bullish divergence. This suggests ongoing weakness rather than a signal that the decline is concluding.

For sentiment to shift positively, XRP needs to climb back above $1.75 to $1.78, and subsequently above $1.86. Until that occurs, the technical outlook advises caution, with $1.60 as the next critical level to monitor on the downside.

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