The digital asset market is amid an overall correction to start in April. However, one asset that is struggling significantly is Ripple (XRP) which has observed $6 million in liquidations as the price fights to hold onto $0.60. Indeed, the liquidations took place over the last 24 hours, according to CoinGlass data.
The price of the asset has been undergoing a steady decline in the near term. Specifically, over the last 7 days, XRP has decreased nearly 5% according to CoinMarketCap. Moreover, those losses extend to more than 6% over the last month. Altogether, the asset is facing a crucial point in the battle between bears and bulls.
Also Read: Ripple: When Will XRP Hit Critical Price Markers of $0.70 and $1?
Ripple (XRP) Liquidations Reach $6 Million as Price Fights for Crucial Level
The digital asset industry has observed rather extreme heights throughout this year. However, those have often been balanced out with a correction back to far lesser levels. These developments have seen Bitcoin ascend to newfound heights, while also affecting some other tokens negatively.
One asset that has been unable to find its footing thus far in 2024 appears to be Ripple (XRP), as it recently observed $6 million in liquidations as it struggles to hold onto $0.60. Indeed, the asset is fending off a decline in its critical support of $0.58 amid trading volume that has dropped more than 25% in the last 24 hours.
Also Read: Ripple (XRP) Forecasted to Hit $1.6: Here’s How
A closer look at the data shows that $5.6 million of the liquidated contracts were held by long positions. This means that those individuals who bet on the increasing price of Ripple (XRP) were forced out. Alternatively, short positions saw profits from decreasing price levels, liquidating only $324,200 worth of contracts.
The aforementioned trading volume saw a massive 60% surge when the liquidations were taking place. An increase in selling pressure likely kickstarted this, but the reversal of trading volume could indicate that the price is unlikely to continue decreasing soon.
The asset is currently facing a $0.55 support if it were to continue falling. Alternatively, there is a short-term upside for the asset. Specifically, it has a price target of $0.74 by some optimistic analysts. Yet, there is still to be a tremendous shift in market sentiment with the arrival of the Bitcoin Halving Event, slated to take place later this month.
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