XRP

August 27, 2025 at 22:02

XRP liquidates long near $2.98; what’s next for risk and price?

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I’m noting a liquidation on XRP: a long position around $150K was wiped out at $2.975. This signals renewed selling pressure and indicates traders were unwilling to hold exposure as the price dipped toward the mid-$3s. The move suggests caution for holders and potential upside momentum would need a fresh catalyst to stabilize above key levels.

Analysis

Context: XRP recently faced a notable long liquidation worth approximately $150,000 at the $2.975 price level. This indicates a shift in market sentiment from holders to sellers as price tested support around the $3.00 region. Liquidity pressure at a round number often reflects leveraged positioning being unwound, which can lead to further downside volatility unless buyers step in with a clear catalyst.

Fundamental factors: Ripple (the issuer behind XRP) often moves with broader cryptocurrency risk appetite, though XRP can be influenced by legal/regulatory updates and developments in liquidity and staking debate within the ecosystem. A liquidation event doesn't guarantee ongoing downside, but it does raise the probability of a continued test of immediate support levels if selling pressure persists.

Technical outlook: The $3.00 area is a psychological level; a breach below this could invite further moves toward the next support clusters near $2.70–$2.85, while a rebound would need to reclaim near-term EMA levels and the $3.20–$3.30 zone to gain traction.

Recommendation

Short-term stance: If you’re not already exposed, avoid adding new long risk until XRP reclaims the $3.20–$3.30 area and shows sustained buying interest. Consider waiting for a clear bullish reversal signal before initiating longs.

Risk controls: Use tight stops below the $2.90 support to protect against further downside. For existing longs, reassess exposure if price breaks decisively below $2.90 with high volume.

Trade plan: Look for a confirmed bounce with volume above average to trigger a cautious long entry near $3.05–$3.10, with a stop near $2.85 and a target at $3.40–$3.60 if the momentum holds.

Disclaimer

The Analysis and recommendations provided are for informational purposes only. Any investment decisions should be made at your own risk. Past performance is not indicative of future results. Always conduct your own research and consider consulting with a financial advisor before making any investment decisions.