As XRP remains stagnant around $3, liquidation levels tighten, posing a threat to both long and short traders. An in-depth analysis of this precarious situation reveals imminent volatility.
As XRP price hovers around $3, data from CoinGlass reveals that “max pain” levels—prices where the majority of leveraged positions suffer maximum losses—are dangerously tightening.
On one side, the pain threshold for short positions sits at $3.387, with $17.9 million worth of contracts at risk if prices rise. On the other side, the equivalent level for long positions points to $2.953, practically at the current market level. A drop below this threshold could trigger more than $11.35 million in liquidations.
This unprecedented configuration means that even modest price variations could trigger a wave of forced liquidations. This dynamic is feared by experienced investors, and even more by those using high leverage.
Since its local peak at $3.60 in early August, XRP‘s price has been evolving within an extremely narrow range between $2.80 and $3.20. This channel strangely coincides with the liquidation levels identified on the blockchain, making the market particularly fragile.
Any drop below $2.95 could trigger a chain liquidation of long positions, increasing market stress. Conversely, breaking through the resistance at $3.30 would put shorts under pressure, potentially triggering an aggressive “short squeeze.”
With a market cap still around $178 billion, XRP maintains its position as the third-largest cryptocurrency behind Bitcoin and Ethereum. But the high-tension volatility could mark a decisive turning point in the coming weeks.
Stuck in such a tight price zone between max pain levels, XRP finds itself literally on a pressure plate. Every market movement, even seemingly innocuous ones, could produce a domino effect on derivatives markets:
The bullish trendline to the south forces investors to go long with a stop loss below. If Bitcoin doesn’t break $115,200 soon, XRP should break downward toward $2.5.
With maximum pain levels just cents away from XRP’s current price, the market is in a very dangerous zone. XRP price analysis clearly shows that neither bulls nor bears are safe. This is especially true in a context where market movements can trigger massive liquidations on derivative products.
The coming weeks could well mark a decisive turning point for Ripple… and for those betting big.
Buying XRP on Bitget is a simple and accessible process, even for beginners. Here’s a step-by-step guide to acquiring XRP and optimizing your purchases with GetAgent, to buy at critical levels and maximize your returns:
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Charles Ledoux is a Bitcoin and blockchain technology specialist. A graduate of the Crypto Academy, he has been a Bitcoin miner for over a year. He has written numerous masterclasses to educate newcomers to the industry and has authored over 2,000 articles on cryptocurrency. Now, he aims to share his passion for crypto through his articles for InvestX.
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