XRP Cleans Up Liquidity at Resistance. Next Up: Support Zone!
The chart shows that supply-side liquidations and the derivatives market for XRP suggest continued pressure in the short term. Long liquidations, in particular, have risen to approximately $4.66 million, representing a strong daily increase of 31.82%. In contrast, short liquidations have increased by approximately $1.13 million, or 61.61%. In terms of quantity, long liquidations are roughly four times greater than short liquidations.
This indicates that a significant number of long positions were forced to close following the recent rise. This suggests the decline is fueled not only by spot selling but also by the liquidation of leveraged long positions.
While there is bearish pressure in the short term, a healthier rebound is possible after the leverage is cleared. Therefore, the dominance of long liquidations confirms that the current movement is downward.
The decline of the MFI to 35.89 appears to be evidence of weakening buying power. More importantly, the drop in MFI from around 60 to 35.89 indicates a weakening of the money flow behind the price increase. Since it's not yet below 20, it's not in the classic oversold region. Therefore, XRP still has room for a decline in MFI. This suggests that a strong bottom signal hasn't yet formed in the current price movement.
The price structure also supports all this data. After rising to around $1.52, XRP retreated to $1.43. The price is falling, the MFI is falling, and Binance's reserves and long liquidations are increasing. This data creates a significant negative structure in the short term. The decline in MFI, especially despite the price attempting an upward move, shows that the rise is not being supported by strong money inflows. $XRP #xrp
The chart shows that supply-side liquidations and the derivatives market for XRP suggest continued pressure in the short term. Long liquidations, in particular, have risen to approximately $4.66 million, representing a strong daily increase of 31.82%. In contrast, short liquidations have increased by approximately $1.13 million, or 61.61%. In terms of quantity, long liquidations are roughly four times greater than short liquidations.
This indicates that a significant number of long positions were forced to close following the recent rise. This suggests the decline is fueled not only by spot selling but also by the liquidation of leveraged long positions.
While there is bearish pressure in the short term, a healthier rebound is possible after the leverage is cleared. Therefore, the dominance of long liquidations confirms that the current movement is downward.
The decline of the MFI to 35.89 appears to be evidence of weakening buying power. More importantly, the drop in MFI from around 60 to 35.89 indicates a weakening of the money flow behind the price increase. Since it's not yet below 20, it's not in the classic oversold region. Therefore, XRP still has room for a decline in MFI. This suggests that a strong bottom signal hasn't yet formed in the current price movement.
The price structure also supports all this data. After rising to around $1.52, XRP retreated to $1.43. The price is falling, the MFI is falling, and Binance's reserves and long liquidations are increasing. This data creates a significant negative structure in the short term. The decline in MFI, especially despite the price attempting an upward move, shows that the rise is not being supported by strong money inflows. $XRP #xrp
