The recent short-lived surge in Bitcoin (BTC) above $107.000 gave a glimmer of hope to the crypto market, but that euphoria was very short-lived. XRP could not escape the pullback either and lost several crucial support levels in the blink of an eye.
Overnight from Sunday to Monday, Bitcoin jumped to $107.114, temporarily giving the crypto market a positive turn. However, the optimism quickly faded as a wave of liquidations worth over $650 million occurred within hours. XRP was caught up in this turbulent period, seeing its value drop by over 5% in a short period of time.
The pullback came as no surprise. Technically, Bitcoin hit a key resistance level, just above the peak reached last week. This resulted in a solid rejection, helped by the many sell orders that were ready there. XRP followed Bitcoin closely, again underlining how closely this altcoin is linked to the largest cryptocurrency.
XRP peaked at $2,44 overnight but failed to hold that level. The price has since dropped to around $2,30, placing it at a fragile support level. The zone between $2,30 and $2,35 still offers some support, but it is looking increasingly fragile. A drop below this level would bring the $2,20 zone into focus as a possible next target.
For a positive turnaround, XRP must first reclaim $2,40. Only with a convincing breakout above $2,45 will $2,50 become a realistic target again. Until then, sellers will continue to have the upper hand.
The current correction is occurring during a period of exceptionally low volatility. This means that even small price movements can lead to large liquidations. For XRP investors, the risks are therefore extra high, even with limited price movements.
As long as Bitcoin fails to take a clear direction, XRP will have a challenge separating itself from the broader market picture. However, some technical indicators point to a possible consolidation phase. If Bitcoin manages to stay above $100.000, that could provide scope for a recovery for XRP.
What Happened to Bitcoin and XRP After the Brief Surge?
After Bitcoin peaked at $107.114, liquidations of over $650 million followed, causing XRP to also drop by over 5%.
Is XRP's Support Lasting?
XRP is currently trading around $2,30, just above vulnerable support zones. A drop below this level could lead to further losses.
How does low volatility affect the market?
The low volatility makes the market vulnerable, meaning even small price movements can lead to significant liquidations, increasing risk for investors.