XRP, the digital asset developed by Ripple, traded near $1.16 on November 7 following a sharp decline from its early October peak of around $1.55. This drop of approximately 25% coincided with increased leveraged liquidations and growing caution among traders. Multiple analysts are currently monitoring crucial support levels that could determine the short-term outlook for the token.
Liquidations and market sentiment
The retreat in XRP price prompted the liquidation of more than $10 million worth of leveraged long positions, according to data compiled by digital asset analytics provider CoinGlass. This substantial unwinding of positions was accompanied by a notable decrease in the open interest indicator, which fell by 12.36%. Open interest measures the total number of outstanding futures contracts, and a decline is often interpreted as traders closing out positions or being forced to exit due to stop-loss triggers or liquidations.
XRP has seen over $10 million in leveraged longs liquidated and open interest fell by 12%, as traders exited after falling beneath a key support range.
The breach of the $1.21 price level during the latest selloff further dampened sentiment. Market participants expressed concern that the loss of this established support zone left XRP vulnerable in the short term, with many waiting to see if buyers would emerge at or near $1.16.
Analyst views on support levels
Technical analysts have identified several areas where buy orders might concentrate. ChartNerd, an independent market analyst, indicated that XRP has broken below a support floor that had held for the past 10 weeks, entering a demand zone between $1.16 and $1.04. ChartNerd highlighted that a double top pattern had formed at the year’s highs and that XRP remains capped below its 20-week and 50-week moving averages—a sign the correction could be ongoing.
ChartNerd noted, “Ripple:native has broken below its 10-week support floor and is searching for a $1.16-$1.04 demand zone. The double-top structure aligns with earlier-year highs, while price remains capped by key moving averages, suggesting a corrective process continues.”
Ali Martinez, another analyst tracking XRP, predicted a more bearish outcome. Martinez suggested that the token has fallen below the midpoint of its trading channel and identified the lower boundary of this range at $0.99.
Trader Dark Defender maintained a more neutral stance, emphasizing the importance of the $1.12 level. This price served as a key resistance in July and August before flipping to a potential support zone. According to Dark Defender, holding above $1.12 could help stabilize the token, while sustained weakness below this threshold might signal a move toward lower support.
The following table summarizes the key support and resistance levels cited by analysts:
| Analyst | Support Level(s) | Resistance Level(s) |
|---|---|---|
| ChartNerd | $1.16-$1.04 | $1.34 |
| Ali Martinez | $0.99 | – |
| Dark Defender | $1.12 | $1.21 |
ETF flows and future outlook
Data from ETF flow trackers indicated that XRP exchange-traded funds have attracted approximately $1.81 billion in net inflows. Although there were modest net outflows on November 2, subsequent trading sessions showed minimal changes in flows, reflecting hesitancy among investors to make further moves in either direction.
Analysts noted that the outlook for XRP in the coming weeks will depend on whether it can maintain support at current technical levels. A successful defense of the identified demand zones could help stabilize prices, but a further loss of support may prompt a retest of even lower levels.
Mini dictionary: Open interest is a measure used in futures and options markets to indicate the total number of open contracts that have not yet been settled. A reduction in open interest can signal reduced trading activity or the closure of existing positions.
