Key Points:
- XRP drops 3.8% in 24 hours as trading volume jumps 25%, hinting at profit-taking.
- Heavy short liquidity between $2.40–$2.50 may trigger a sudden upside short squeeze.
- XRP sentiment hits 17-day high after legal update confirms non-security status remains intact.
XRP traded at $2.09 at the time of writing on Friday, marking a 3.8% drop in the past 24 hours. This price decline comes alongside a 25% increase in daily trading volume, which rose to $2.72 billion. A surge in volume during a price drop often signals profit-taking or a shift in positioning by traders.
Over the past week, XRP has declined by 3.6%. Its total market capitalization now stands at approximately $123.77 billion. Despite the price weakness, increased activity suggests that market participants are anticipating short-term volatility or a new directional move.
Heavy Short Liquidity Builds Between $2.40–$2.50
Market watcher Steph_iscrypto posted that a heatmap shows concentrated short liquidity between the $2.40 to $2.50 price range. A breakout above this area may trigger a rapid short squeeze as traders are forced to cover positions.
Notably, this observation aligns with the current consolidation pattern in XRP. When liquidity stacks tightly in a narrow range, price movement outside that zone often accelerates. If enough buying pressure builds above the short zones, it may result in quick upward movement.
MACD Signals Ongoing Bearish Momentum
Technical data shows that the Moving Average Convergence Divergence (MACD) is leaning bearish. The MACD line has fallen below the signal line and is trending under the zero level. This position typically signals weak momentum or possible downward continuation.
In addition, the MACD histogram is also in red territory, confirming fading bullish energy. These indicators are consistent with the recent price behavior and volume increase, which may indicate that short-term selling is dominating while traders wait for confirmation of a breakout or further decline.
XRP Sentiment Rises Amid Legal Clarity
Despite the price drop, data from Santiment shows that XRP sentiment has reached a 17-day high. This shift in sentiment comes after the recent legal development in the Ripple-SEC case, where a $50 million settlement was delayed.
Community voices, including Vet and Ripple’s Chief Legal Officer Stuart Alderoty, clarified that the remaining parts of the case focus only on Ripple, not XRP. Alderoty noted that Judge Torres’ decision outlines two options: continuing with the appeal or withdrawing the case. He added that XRP’s classification as a non-security remains unchanged.
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Source: https://coincu.com/345513-xrp-falls-to-2-09-as-shorts-stack/