XRP Enters Correction Phase After Intense Rally Fails to Hold

XRP has entered a correction phase after experiencing a rapid and intense rally. The token's price dropped by 4.03% to $1.41 on Wednesday, underperforming the broader market. This decline was driven by a cooling-off period following a massive surge that reached over 70% in just 72 hours last week.

The rally, which peaked near $1.70, left XRP overbought and met resistance at the $1.65-$1.70 zone, a critical Fibonacci level. The high leverage ratio on Binance, reaching 0.21, its highest since January, contributed to extreme derivatives positioning and increased liquidation risk.

Technical traders view this move as a healthy technical pullback after a parabolic rise, exacerbated by forced selling from over-leveraged positions. A sustained break below the $1.4342 support could trigger more liquidations and deepen the correction.