XRP has recently undergone major turbulence, as nearly all high-leverage long positions in its derivatives market were liquidated. This large-scale liquidation significantly reduced the leverage risk in the market, and technical indicators now point to early signs of recovery for the cryptocurrency.
Impact of clearing leveraged positions
Throughout May, XRP witnessed sharp price swings, resulting in substantial losses for investors with leveraged long-term trades. According to liquidation maps, the large cluster of leveraged positions that had accumulated beneath the XRP price since the start of the month has been gradually erased from the market. These were high-risk zones for traders using significant leverage, and during price drops, triggered waves of swift liquidations.
Over the past month, all high-leverage long XRP positions in the derivatives market have reportedly been completely liquidated.
Following these events, there’s a sense that the market is now “cleaner.” Previously, the concentration of liquidation zones below price levels created downward pressure, but much of that risk has dissipated. Many market participants believe such comprehensive clearing of positions has helped restore balance and health to the trading environment.
In earlier weeks, new long positions were opened with every price rally, followed by another round of liquidations during each decline. However, this cycle now appears to have provided more cautious investors with a fresh basis for pricing the cryptocurrency.
Technical indicators hint at recovery
After the liquidation flush, technical analysis for XRP shows improving momentum. On May 28, XRP dropped to as low as $1.28, entering an oversold area before quickly recovering above $1.34.
On four-hour charts, a pattern of consecutive higher lows indicates that selling pressure is receding in the short term. This setup is being interpreted as the early stages of a possible upward trend.
Momentum-wise, the MACD indicator has produced a positive crossover, with the MACD line now above its signal line. In addition, the MACD histogram is expanding in the positive area, suggesting that buyer dominance is building in the market.
The RSI indicator has climbed above the critical level of 50, nearing 57, yet remains below the overbought threshold. This indicates continued room for upward movement even with increased buying interest.
Glossary: A liquidation map visually pinpoints risk zones where leveraged positions accumulate in the market, highlighting potential price levels that might trigger broad position closures.
Alongside these technical signals, an uptick in trading volume suggests that the recent rise is not merely a product of short-term volatility, but stems from genuine market demand.
Key resistance levels and short-term outlook for XRP
Market attention is now shifting to the $1.36–$1.38 range, which previously acted as support but is now functioning as resistance after the latest drop. Technically, a break above this zone could reinforce the short-term bullish scenario.
Nonetheless, as XRP continues to trade below its May peak of $1.55, the broader correction is not yet fully resolved. Still, the ongoing technical recovery is prompting investors to watch closely for further upside potential in the days ahead.
| Resistance Level | Support Level | KEY INDICATORS |
|---|---|---|
| $1.36 – $1.38 | $1.28 | MACD (positive), RSI (57), increased volume |
