XRP Hinges on Crucial Support as Selling Pressure Persists

XRP has cleared liquidity around its immediate resistance level but is now facing a crucial support area that could decide its next move.

The token had climbed to $1.69 last week, but met strong resistance and pulled back to $1.40. It currently trades at $1.41, with a 40% gain over the past week.

CryptoQuant analyst Pelinay notes that selling pressure remains high, citing long liquidations reaching $4.66 million, a 31.82% increase in one day, compared to short liquidations of around $1.13 million, which rose by 61.61%. This imbalance suggests the recent decline was driven not only by spot-market selling but also by leveraged long positions being closed out.

Pelinay highlights XRP's declining Money Flow Index (MFI), which fell to 35.89 from around 60. While this shows weakened buying pressure, it hasn't yet entered the technically oversold area, leaving room for further weakness.