XRP Witnesses a Major Pullback
Having shed off 11.6% of its value in the last 24 hours to trade at $3.13, XRP finds itself on the receiving end due to intensified profit-taking.
Notably, after rallying over 68% from early July to soar to the record high price of $3.65, XRP is experiencing a classic post‑rally retracement as traders book profits.
As a result, renowned market analyst EGRAG CRYPTO believes that XRP has to hold $3.12 to avoid further downside.
Why is $3.12 a critiical support level? Well, it represents a deep Fibonacci retracement on the 4‑hour chart. A retest here could reinforce the foundation for the next bull run.
This is because a strong bounce from the $3.12 zone would confirm structural integrity and bullish momentum, signaling a healthy reset before a potential rally toward the $4.16 Fibonacci 1.21 extension, aligning with classic Elliott Wave and breakout patterns.
Nevertheless, if $3.12 does not hold, XRP risks further downside because the next major support zone lies at the psychological price of $3.0.
XRP’s Liquidations Surpasses $18 Billion
XRP has endured a brutal wave of liquidations exceeding $18 billion, a seismic event with roots in overheating speculation, thin liquidity, and regulatory shockwaves.
Sharp corrections in crypto markets earlier this week triggered over $735 million in total liquidations, with XRP alone accounting for approximately $88.6 million, second only to Ethereum in losses.
A brutal four-hour purge wiped out more than $41 million in XRP longs, reflecting how leveraged positions rapidly unravelled in the face of a sudden downside move.
What is the underlying issue? Well, the XRP’s derivatives market was overheated because open interest surged to a record high with XRP futures hitting $10.98 billion.
As a result, traders piled into long positions in anticipation of higher prices, especially around the $3.00–3.04 zone. But these same levels housed massive liquidation clusters with a break below 3.04 being risky since it could trigger cascading forced exits.
Conclusion
XRP’s more than $18 billion liquidation episode was the result of a perfect storm of excessive leverage, scarce liquidity, and sudden regulatory repricing.
Whether this marks a tipping point toward recovery or just a trading trap depends on how quickly and decisively XRP reclaims calmer conditions with $3.12 being key to hold.
