- XRP’s price is revealing no indications of ending its turbulent descent that was sparked by the SEC’s lawsuit against Ripple for performing an unregistered securities offering
- This news sent out panic throughout the marketplace and caused the cryptocurrency’s price to crash, falling from over $0.50 before the news to lows of $0.20 yesterday
- Where it trends in the mid-term need to depend largely on advancements surrounding this claim
- However, from a technical point of view, the cryptocurrency is presently afflicted by enormous weak point that might not slow down anytime soon
- Data surrounding the other day’s XRP trading activity shows that it saw an enormous spike in volume, with the selloff leading to over $176 million in liquidations
XRP has been struggling to gain any buy-side support in the time following news relating to the SEC’s suit versus Ripple, which declares that XRP is an unregistered security.
This lawsuit produced a wave of panic and worry amongst XRP financiers and came about soon after the crypto’s parabolic rally to highs of $0.90.
Yesterday, throughout the peak of the cryptocurrency’s selloff, XRP’s rate destroyed to lows of $0.21 before it was able to discover some buying pressure.
The subsequent rebound led it as much as $0.30, but it was rejected here and has actually been sliding lower since.
This movement’s results have been ravaging for buyers, with an overall of $176 million in long positions being liquidated over a 24-hour timespan.
XRP Struggles to Gain Momentum as Rebound Falters
At the time of composing, XRP is trading up partially at its current rate of $0.26. This marks a notable decline from its recent highs of $0.90 set just a few weeks back.
The selling pressure seen in the time considering that the SEC news has actually been unmatched and even caused it to shatter the last severe support it had around $0.30.
Here’s the Aftermath of Yesterday’s Crash
According to one analytics company, XRP’s 40% rate decrease the other day happened in the middle of ultra-high trading volume and led to a total of $176 million worth of long positions to be liquidated.
This is the highest level of liquidations seen over the past 8 months.
“& ldquo; XRP yesterday, a summary: -40% cost drop -OI obliterated -High trading volume: $10 bln on futures and $3 bln on area. On futs, it was the 2nd greatest trading volume -Mass liquidation: $176 mln longs got liquidated. The highest level of liquidations over the last 8 months & hellip;”
Image Courtesy of Coinalyze. Unless there's some huge turn of events that work in XRP's favor, the SEC claim will likely be a “& ldquo; black swan & rdquo; that triggers a continued descent.Featured image from Unsplash. Rates data from TradingView