XRP Price Rebounds Amid Liquidations, Breakout Pattern In Focus

Key Insights:

• XRP price rebounds after $59M in long positions get liquidated.
• Technicals hint at a breakout despite weak on-chain and derivatives data.
• Trump’s tariffs drive volatility, impacting XRP’s short-term recovery outlook.

Ripple (XRP) price recovered Tuesday after a bruising 14.5% drop on Monday triggered over $59 Million in liquidations. Analysts now see a potential return of XRP toward $2 as volatility grips the market.

During the late Asian session, XRP price exchanged hands at $1.92, recovering from a low of $1.64. Despite ongoing macroeconomic pressures, including the United States shifting tariff stance.

Head-and-Shoulders Breakout Fuels XRP Price $1.30 Target

Ali Martinez, a market analyst at Ali Martinez, noted that XRPis breaking out from a head-and-shoulders pattern. He suggested this setup may pave the way for a move to $1.30.

Other analysts also see potential. X user @CrazyBuddha_ said the triangle consolidation pattern of XRP indicated a trend shift.

He argued the recent pullback “is just setting up for a stronger rally.” The bullish sentiment contrasts recent data showing large liquidations and waning market activity.

Mass Liquidations Underscore Market Stress

According to CoinGlass, over $59 Million in long XRP positions were liquidated on April 7. This was coupled with $11.56 Million in short liquidations.

The scale mirrors a previous event between February 2 and 4, when long liquidations totaled $112.25 million. At the time, XRP price fell 40% from $2.97 to a four-month low of $1.76.

Open interest (OI) has also dropped. XRP OI fell to $2.87 billion, down 63% from its January 18 peak of $7.8 billion.

Funding rates for XRP perpetual futures remain negative, signaling bearish sentiment. Negative rates suggest short-sellers dominate, with longs getting paid to hold positions.

Trump Tariffs Add to Crypto Market Jitters

The broader crypto market weakness stems from a “risk-off” mood. The mood followed President Donald Trump’s April 2 announcement of 10% reciprocal tariffs, effective Wednesday.

During a press conference with Israeli Prime Minister Benjamin Netanyahu, Trump doubled down. He warned of a possible 50% tariff on China, sending global markets into a tailspin.

Ripple’s native token, often used for cross-border payments, is significantly exposed to macro disruptions. A trade war could reduce demand for its utility as an international bridge currency.

Analysts argue this macro tension may have driven XRP’s initial sell-off. However, others see opportunity in the aftermath.

Undervalued Metrics Offer Bullish Hints

Despite heavy selling, on-chain data signals reduced selling pressure. Santiment’s Market Value to Realized Value (MVRV) ratio for XRP price stood at 1, or 9.47% below the mean.

A negative MVRV ratio indicates holders are at a loss. This often discourages further selling and historically precedes price rebounds. That said, a rebound depends on reclaiming key resistance.

XRP’s Relative Strength Index (RSI) is sliding toward oversold territory. The Moving Average Convergence Divergence (MACD) sustained a sell signal since March 28.

A daily close above the 200-day Exponential Moving Average (EMA) could flip the trend bullish. Until then, the outlook remains uncertain.

Declining Activity May Weaken the Recovery

The daily active addresses of XRP, another metric from Santiment, showed declining network usage. On March 19, the count stood at 581,000. By Monday, only 10,100 addresses were active.

The steep drop in address activity reflects falling user demand. This could undermine recovery efforts. For a sustained uptrend, demand needs to rise alongside price.

If the Bulls reclaim the $2.00 level, momentum could return to their favor. A move above that resistance may open the path toward $3.00. The direction of XRP Price hinges on whether buyers can overcome technical and macro headwinds in the days ahead.

Disclaimer

In this article, the views and opinions stated by the author or any people named are for informational purposes only, and they don’t establish the investment, financial, or any other advice. Trading or investing in cryptocurrency assets comes with a risk of monetary loss.