Recently, XRP faced a strong sell-off across the market. Price dropped nearly 6.7 percent, falling to the $1.75 area. During this move, more than $70 million worth of long positions were liquidated. This was not just a simple price correction. It signaled a clear shift in market structure, funding behavior and overall trader sentiment.
1. Price Action and Key Technical Levels
Why price moved lower
XRP declined from around $1.88 to near $1.75, breaking the major support level at $1.79. Once this support failed, selling pressure accelerated.
That broken support has now turned into resistance, meaning price may struggle to move higher unless it reclaims that level decisively.
Current support and resistance:
Immediate support is located around $1.74 to $1.75
Major resistance sits at $1.79 to $1.82
If the $1.74 zone fails to hold, the next downside support is likely near $1.70 or lower.
In short, the $1.79 level is critical. Without reclaiming it, upside momentum remains limited.
2. Funding Rates and Derivatives Data
Negative funding rates
Funding rates have turned negative, which indicates that short positions are currently dominant while long interest has decreased. This shows that the majority of traders are positioned for further downside.
When shorts become overcrowded, even a small catalyst can push price sharply upward, leading to a short squeeze.
Negative funding itself is not bullish, but historically it often appears during late-stage leverage flushes.
3. Large Liquidation Event
Over $70 million liquidated
Once price broke below the $1.79 support, a large number of long positions were force-closed. This resulted in over $70 million in liquidations and added more selling pressure to the market.
Large liquidation events usually mean excessive leverage was used. When price moves against those positions, forced exits happen quickly and increase volatility.
4. Trader Behavior and Market Psychology
Short positioning is currently high, and the broader market is in a sell-off phase. This has created fear and hesitation among traders.
At the same time, many long traders have already taken losses or exited their positions.
Panic selling often appears right after key support levels break, especially when accompanied by large liquidations.
5. What to Watch Next
Bullish scenario
If XRP manages to reclaim the $1.79 to $1.82 zone, it could signal a transition from accumulation to recovery.
A return to positive funding rates would further support a short-term bullish shift.
Bearish scenario
If $1.74 breaks, downside pressure is likely to increase, with $1.70 becoming the next key level.
Another wave of liquidations could accelerate the move lower.
6. Practical Market Guidance
Pay close attention to the $1.74 to $1.82 range
Monitor funding rates to understand trader positioning
Be cautious during liquidation-driven volatility as price swings tend to expand quickly
Why this matters
This move is not only about price going down.
Large liquidations confirm that leverage was too high.
Negative funding rates show growing bearish bias.
At the same time, such conditions can sometimes fuel sharp reversals.
Key technical levels will decide the next direction. Once support or resistance is clearly reclaimed or lost, momentum can shift fast.
XRP is currently under technical pressure, but that does not automatically mean the trend is fully bearish.
A reclaim of $1.79 to $1.82 could open room for a short-term rebound.
A loss of $1.74 would likely increase downside momentum.
This situation reflects a combination of price action, leverage dynamics and market sentiment rather than a simple trend move.