Issues with the XRP price and a surge in liquidations
The cryptocurrency economy experienced a decline in total market capitalization below $3 trillion late on December 15 due to a sharp drop in Bitcoin (BTC) to $85,140, its lowest level since early December. Even the announcement of a large purchase of BTC — about 10,600 coins — by Michael Saylor on Monday was not enough to revive the desperately needed bullish sentiment.
While BTC has fallen about 4.5% over the past 24 hours, the sell-off has heavily impacted high-cap altcoins, many of which have lost 6% or more. XRP has been one of the hardest hit, dropping 6.5% to $1.85, its lowest price since November 21. This drop pushed XRP's market capitalization just below $112 billion, allowing BNB to strengthen its position as the fourth digital asset.
The latest drop in XRP has deepened its losses to 16.6% over the past 30 days and nearly 50% since the peak on July 18 at $3.66. At the time of writing (12:30 AM December 16), almost all gains made since the low on April 9 have evaporated. The data confirmed the intensity of selling pressure, showing that the sharp drop in XRP triggered the liquidation of $15 million in long-term leveraged positions, which significantly outweighed just $235,000 in liquidated short positions.
The downtrend of the altcoin continues, despite positive institutional indicators; recently launched XRP physically-backed exchange-traded funds (ETFs) have shown steady inflows, absorbing over $400 million in XRP value since November 14. This suggests that short-term price movements are driven by technical selling and macroeconomic risk aversion rather than fundamental demand.
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Technical analysis: Reaching ‘Critical Support’
Despite concerns, one analyst believes the market movements are a necessary technical correction. “Testing support is a GOOD thing and allows for further movement,” noted market analyst TARA on X.
TARA's perspective suggests that the current pressure is necessary to flush out the “weak hands” and create a solid base. She argues that if XRP can hold the line at $1.88 and avoid setting a new low, the market will be primed for a significant rally. This potential rebound is compared to similar price movements of BTC, where holding key support often precedes a powerful breakout.
The consensus in the broader market analysis is that the range from $1.80 to $2.00 represents a critical long-term support zone. Holding this macro support is now a key requirement for any significant bullish recovery attempt.
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Bullish scenario:
If XRP holds support at $1.88 and breaks above local resistance zones (recently marked around $1.93 to $2.05), the technical structure becomes strongly bullish, potentially leading to rapid price growth.
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Bearish scenario:
A decisive breakout and close below this macro support zone, especially below $1.80, could signal a deeper decline, potentially testing the next key support zone around $1.73.
