XRP’s latest decline has wiped out nearly $40 million in bullish bets, raising concerns that another wave of selling could push the cryptocurrency below $1.
Nearly $39 million in leveraged long positions were liquidated on November 8, compared with just $366,000 in short positions, according to CoinGlass.
Liquidations occur when traders borrow money to bet on rising prices, and exchanges automatically close their positions as losses mount. The forced selling can accelerate a decline, triggering further liquidations.
XRP has now fallen for five consecutive days, losing roughly 14% and trading near $1.09.
Why XRP’s Price Chart Signals More Trouble
The warning signs appeared in October. XRP repeatedly found buyers around $1.26, but each recovery became weaker.
Technical analysts call this a descending triangle, a pattern suggesting sellers are gradually gaining control.
When XRP finally broke below $1.26, the outlook deteriorated. A brief recovery toward $1.34 on November 4 quickly failed, showing buyers could no longer sustain higher prices.
Its Relative Strength Index (RSI), which measures price momentum, has since fallen to around 26, the lowest in three months.
That signals intense selling pressure. It also suggests XRP may be oversold, allowing a temporary rebound even if the broader decline continues.
Why the Selling Pressure Could Continue
The derivatives market remains exposed. XRP futures open interest stands near $2.51 billion, representing outstanding trading contracts.
Despite recent liquidations, the number of XRP tokens represented by those contracts remains relatively high. That leaves further leveraged positions vulnerable if prices fall again.
Meanwhile, US spot demand has weakened, and even a $540 million Binance outflow failed to support prices.
Can XRP Hold $1?
The next critical support sits around $1, a level buyers previously defended in August.
A daily close below it could expose $0.86, the technical pattern’s projected downside target. That represents another potential 21% decline.
Conversely, recovering $1.14 would provide the first sign that selling pressure is easing. Reclaiming $1.26 would offer stronger evidence of recovery.
For now, XRP’s immediate direction depends on whether buyers return before another wave of forced selling develops.
