After a continuous price drop, XRP is on the verge of breaking out from its prolonged consolidation phase, a key resistance zone. The key reason for this bullish outlook is the price rebound across the cryptocurrency market.
XRP’s Price Momentum
With the shift in market sentiment, XRP’s price has soared by 2.50% in the past 24 hours and is currently trading near the $2.51 level. This price surge has pushed the asset close to the upper boundary of its consolidation zone at $2.54.
If market sentiment remains unchanged, there is a strong possibility that XRP could breach this prolonged hurdle and surge by 30% to reach the $3.32 level.
XRP Key Levels and Over-Leveraged Positions
Looking at the bullish outlook, intraday traders holding long positions are strongly dominating XRP, having maintained significant open positions over the past 24 hours.
Data shows that traders with long positions are over-leveraged at $2.386, where they have built $65 million worth of long positions. Meanwhile, $2.533 is another key level where traders with short positions are over-leveraged, currently holding $20 million worth of short positions.
Looking at the current XRP price in relation to the liquidation level, it appears that $20 million worth of over-leveraged positions is at risk of liquidation, as the price is near the $2.533 level. If this level gets liquidated, there is a strong possibility that XRP could easily reach its predicted level due to minor bets by short traders.
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