XRP price risks crash below $1 amid huge sell-off

XRP is getting dangerously close to crashing below $1 on Friday, June 26, amid a huge sell-off triggered by broader crypto weakness and heavy derivatives liquidations. 

The digital asset has fallen nearly 9% this week, trading at $1.01 at one point earlier today, and the latest CoinGlass data shows that over 97% of XRP long positions have been wiped out in the past 24 hours.

Bitcoin (BTC) was among the chief suspects, sliding to a fresh yearly low near $58,000 on Thursday and triggering a wave of forced liquidations across major assets, including XRP.

It all accelerated further with the latest U.S. Personal Consumption Expenditures Price (CEP) inflation reading, which came in at 4.1% year-over-year for May and renewed institutional outflows.

As a result of all the developments, XRP is now the biggest loser among the top 10 digital assets by market cap in the last 24 hours, losing 4.12% of overall value. At press time, it changes hands at $1.03.

XRP price June 26. Source: Finbold

Is an XRP crash imminent?

Short-term, derivative indicators continue to lean bearish. Notably, XRP’s long-to-short ratio has slipped to 0.94, the lowest reading in more than a month. At the same time, funding rates have turned negative, as short sellers increasingly dominate leverage markets.

According to market analyst Ali Martinez, the cryptocurrency is currently retesting a major volume block around $1.06, as more than 830 million XRP previously changed hands at this level.

“XRP is testing a major volume block at $1.06. On-chain data from the UTXO Realized Price Distribution (URPD) shows that over 830 million XRP changed hands at this exact price…. If the market drops below this level, the transaction history outlines the next core support targets where significant volume previously accumulated,” Martinez wrote.

That is, the concentration of historical transactions marks $1.06 as a battleground where buyers and sellers have previously established equilibrium. Accordingly, Martinez warns that a breakdown below this level would weaken the structure and expose the next layers of historical accumulation zones.

The likelihood of an XRP crash, however, likely remains most closely tied to Bitcoin’s and its ability to stabilize. That is, a sustained recovery in BTC prices, combined with a slowdown in institutional outflows, would likely ease pressure across altcoins, too.

Featured image via Shutterstock

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