XRP’s Parachute Fails as an Avalanche of Forced Liquidations Drags the Token to Multi-Month Lows
The digital currency market shook today as XRP’s parachute failed to open during a steep market drop. An avalanche of forced liquidations dragged the token to multi-month lows, wiping out support levels that previously kept XRP (XRP-USD) stable. This downward move destroyed 5% of XRP’s value after selling overwhelmed buyers at $1.20, leaving traders wondering if this drop marks the bottom or a deeper collapse.
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The worst damage occurred when XRP trading volume exploded to 268.2 million tokens, triggering automated liquidations. This forced the token’s price down from $1.17 to a low of $1.09 before buyers stopped the bleeding.
Liquidations Destroy XRP’s Critical Price Floors
Because this violent move shattered the charts, the old $1.20 buying zone is now a thick ceiling of resistance. Furthermore, recovery volume for XRP remains much weaker than the initial crash volume, showing that buyers are still hesitant to jump back in.
This sharp selloff quickly pushed the crypto Fear and Greed Index into extreme fear as macro uncertainty grew. Due to this pullback, the total valuation of XRP slid below $75 billion, causing XRP to fall behind the stablecoin USDC in market rankings.
Market Panic Flips XRP Rankings
This decline happened despite crypto exchange-traded funds bringing in $4 million in new inflows right after the drop. Unfortunately, these institutional purchases were too small to counteract the massive retail selling across global exchanges.
Following this breakdown, experts point to the tight window between $1.09 and $1.10 as the most important floor on the XRP chart. If the price fails to defend this boundary, analysts warn that XRP could slide toward the $0.92 area.
Technically, the plunge pushed the weekly relative strength index for XRP into its most oversold state in years. While this often happens near a market bottom, experienced traders know XRP can stay depressed during forced liquidations until strong buying volume returns.
At the time of writing, XRP’s price is sitting at around $1.10.
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