- XRP Price dropped to $1.02 following the liquidations and reduction in open interest.
- A lower open interest was observed at Binance and Bybit since traders closed their leveraged XRP positions rapidly.
- XRP is currently testing the $1 level amid a resistance level of $1.14.
XRP Price is at a new stage in the current week as long positions have been liquidated and derivatives trading volume decreased along with the fall in the cryptocurrency to its lowest point since February.
The price of XRP fell to $1.02 on June 26, but managed to climb back to $1.06, which makes the $1.00 support line important for further analysis.
The latest data from the market shows that leveraged long positions took all the losses during the sell-off period, as well as open interest dropped to its lowest point over several months.
XRP Price Analysis Points to Biggest Long Liquidation Event Since February
The bearish trend gained further strength after XRP fell below the $1.07 mark, triggering one of the largest long-liquidation events seen in the last couple of months.
The figures indicate that nearly $9 million worth of long contracts were liquidated on June 25, marking the largest long squeeze event since February 5.
Binance accounted for nearly half of the total. Around $4.5 million in long positions were liquidated on the exchange, underscoring how heavily leveraged traders were affected as XRP extended its losses.
The same data showed a different picture on the bearish side of the market. Small-scale liquidations were prevalent throughout the drop in prices, which meant that the traders who had placed bets on falling prices were under no threat at all, whereas the longs were bearing the brunt of the liquidations.
This showed how fast the market mood changed when XRP started losing support at the lower price levels.
XRP Price Open Interest Down On Major Exchanges
After the liquidations, there was a noticeable repositioning by traders in the derivatives market.
On Binance, the open interest in XRP declined to around $205 million, its lowest in two months since March 22.Moreover, open interest on Bybit decreased to about $185 million, a point where it stood before June 6.
Source: Cryptoquant
Since both platforms saw a similar drop, it seemed that the decrease in leverage was more of market-wide activity as opposed to exchange-driven.
Low open interest means that there are less leveraged trades on the market. In this instance, the drop in open interest came after the selloff and demonstrated that leveraged positions were decreased in the market for XRP derivatives.
With Binance open interest falling to its lowest level in three months, the question is whether the lightening of the position will lead to smoother trading or whether there will be more losses, if buyers fail to show up.
Key Technical Levels for XRP from Price Analysis
Price action has made several technical levels the focal point for XRP.
The closest resistance level is at $1.0866. Above that, additional resistance levels are located at $1.1361 and $1.2156. If buyers regain control above those areas, the next technical targets are positioned near $1.2798, followed by $1.3440 and $1.4355.
Support is clustered around the $1.0076 mark, which is slightly higher than the critical $1.00 level. Going below this level will uncover the previous swing lows while keeping the bearish trend intact.
Source: Trading View
Another level that is under consideration is between $1.14 and $1.22, where many significant exponential moving averages converge.That range continues to serve as the primary resistance zone that buyers would need to reclaim before the medium-term trend changes.
Current chart conditions also show XRP trading beneath all major exponential moving averages while remaining near the lower boundary of the Donchian Channel.
Market Watches the Battle Around $1.00
Attention has now shifted to whether buyers can defend the $1.00 support area following this week’s decline.
However, any break above $1.1361 will shift the attention towards the following resistance level at $1.2798, while a $1.3440 will come into focus if the buying pressure persists.
Market statistics also revealed ongoing withdrawals from exchanges, which means that the market participants were continuing to take XRP off exchanges without selling their position. At the same time, the decline in open interest suggested that much of the recent leverage had already been removed from the market after the liquidation event.
Those two developments leave spot market demand as one of the primary factors likely to influence the next directional move.
If support at $1.00 fails, the current bearish structure would remain intact and previous swing lows could come back into focus. If buyers successfully defend that level while reclaiming resistance above $1.1361, attention would shift toward the higher technical targets identified on the chart.
As of press time , XRP was selling at $1.06, which equates to a rise of 1.46% from the previous 24 hours. The daily trade volume is approximately $2.09 billion, and its market capitalization is estimated at $65.88 billion, which makes it the sixth largest crypto asset by market capitalization.
