- Dense long liquidation zones are forming below XRP’s current price, increasing downside risk if support levels fail to hold.
- Total liquidation data shows more long liquidations than shorts, suggesting leveraged traders are leaning bullish despite sideways price action.
- The $2.00 level is acting as a pivotal support, with a breakdown potentially triggering a wave of forced liquidations.
A recent examination of XRP’s liquidation data reveals ongoing market stress for leveraged long positions, with intensified clusters appearing below the current trading range. Market participants appear increasingly cautious as the token trades near the $2.00 mark, showing signs of compression between bullish and bearish forces.
Rising Liquidation Risk Emerges Below Key XRP Price Levels
According to data from Coinglass, the Binance XRP/USDT liquidation heatmap indicates a dense buildup of long liquidation levels below current price zones. These clusters have been forming over the past two months and are particularly visible just below the $1.90–$2.00 range. Historically, these liquidation zones act as magnets in volatile markets, often triggering downward spikes if sell pressure increases.
Source: Coinglass
This accumulation of liquidation levels may reflect the presence of overleveraged positions that could become vulnerable if XRP’s price dips slightly further. If these zones are tested, cascading liquidations could accelerate downward movement.
Mixed Liquidation Activity Reflects Uncertainty
XRP’s total liquidation chart offers further insight into market sentiment. Both long and short liquidations have been frequent, although recent trends point to higher long liquidations relative to shorts. Currently, XRP is trading at $2.26 which is a 0.4% price decline showing negative momentum.
Over the past month, XRP’s price trended sideways despite occasional high-speed moves that caused both buyers and sellers to lose their positions. As the indicator rises, it shows that traders are indecisive and can cause rapid changes in prices, mainly because leveraged positions continue to grow.
XRP Key Levels to Monitor
From a technical standpoint, the $2.00 support level is a critical zone. A breakdown below could expose XRP to further liquidations, possibly driving prices toward the $1.70–$1.80 band. On the upside, reclaiming $2.20 with volume could shift sentiment and invalidate some of the liquidation risk.
Until then, market observers continue to highlight the risks of open leveraged positions. The liquidation heatmap suggests that unless momentum shifts decisively, long traders remain at a heightened risk of forced exits.
