Following a consistent downward trend, XRP is now on the brink of breaking out from its extended consolidation phase, approaching a crucial resistance zone. The primary reason behind this optimistic outlook is the price recovery seen across the cryptocurrency market.
XRP’s Price Momentum
With the shift in market sentiment, XRP’s price has surged by 2.50% in the last 24 hours, currently hovering around the $2.51 mark. This price upturn has propelled the asset close to the upper limit of its consolidation range at $2.54.
If the market sentiment remains unchanged, there is a high likelihood that XRP could surpass this prolonged barrier and surge by 30% to reach the $3.32 level.
XRP Key Levels and Over-Leveraged Positions
Observing the bullish forecast, intraday traders holding long positions are significantly dominating XRP, maintaining substantial open positions over the past 24 hours.
Data indicates that traders with long positions are over-leveraged at $2.386, where they have accumulated $65 million worth of long positions. On the other hand, $2.533 represents another critical level where traders with short positions are over-leveraged, currently holding $20 million worth of short positions.
Assessing the current XRP price relative to the liquidation level, it appears that $20 million worth of over-leveraged positions is at risk of liquidation as the price approaches the $2.533 mark. If this level experiences liquidation, there is a strong possibility for XRP to easily reach its projected level due to minimal bets from short traders.
