The XRP price experienced a major flash crash that erased most of the gains made earlier this month.
Summary
- XRP price crashed, leading to a $74 million in liquidations.
- The coin may rebound as the recently launched XRP ETF gain momentum.
- The SEC will likely approve multiple XRP funds in October.
XRP liquidations jump amid crypto flash crash
Ripple (XRP) traded as low of $2.7082, its lowest level since Sept. 1. It was down about 26% from the year-to-date high of $3.6600.
The XRP price action coincided with the ongoing crypto market crash as the recent profit-taking intensified. It also happened as the total liquidations in the last 24 hours jumped by 842% to $1.7 billion.
XRP’s bullish liquidations soared to $75 million, the highest point since July 23, when they hit $82 million. Liquidations occur when exchanges close leveraged positions because collateral is not enough to cover potential losses.
Still, the XRP token has some potential bullish catalysts that could push it higher in the near term. The first major catalyst is that the recently launched REX-Osprey XRPR ETF is seeing substantial inflows, a sign of strong demand from American investors.
It has already accumulated over $10 million in assets despite its 0.75% expense ratio. Its performance, together with that of leveraged ETFs like Teucrium’s XXRP and ProShares’ UXRP, suggests that other Act 33 funds will have a strong reception.
In a recent statement, Crypto.com’s CEO predicted that spot XRP ETFs will see over $8 billion in inflows in the first 12 months. His statement mirrored one made by JPMorgan earlier this year.
Polymarket odds of an XRP ETF approval have jumped to over 96%. If this happens, odds are that it will occur in October, when the final deadlines of most proposals are due.
XRP price technical analysis
The daily chart shows that the XRP price has plunged in the past few months, moving from the year-to-date high of $3.6600 to a low of $2.7082 today.
On the positive side, the coin has formed a hammer candlestick pattern, which often leads to a strong bullish breakout.
Also, the coin remains inside the descending channel that has formed since July. This channel is part of a bullish flag pattern, which often leads to a strong breakout.
If this happens, the initial target to watch will be the all-time high of $3.6598, which is about 27% above the current level. The bullish XRP forecast will become invalid if it drops below the lower side of the channel.
Source link