XRP Suffers $7M Long Liquidations Amid Legal Setback

XRP has recently experienced significant market volatility characterized by a pronounced imbalance in liquidations heavily impacting long positions, with losses reaching over $7 million compared to under $1 million on shorts, signaling an overexposure of bullish traders. Despite a slight price drop of around 4%, this liquidation disparity highlights the fragility of the current bullish sentiment, exacerbated by increased whale activity and large-scale token transfers by Ripple, which have fueled fears of a potential broader selloff. Technically, XRP is struggling to maintain support around $2.08, with resistance near $2.17, and analysts observe a descending channel pattern that points to possible further declines toward $2.00 or even $1.91 absent strong buying momentum. However, some analysts see potential for a breakout, citing whale accumulation and outflows from exchanges suggesting underlying bullish momentum, with key resistance levels that, if broken, could pave the way for gains to $2.70 or higher. Complicating XRP's outlook is a recent court ruling rejecting a joint request by Ripple and the SEC to reduce a previously imposed $125 million civil penalty, underscoring ongoing legal challenges that continue to weigh on market sentiment. Overall, XRP is navigating a complex landscape of technical pressure, legal uncertainty, and speculative market behavior, with its near-term direction hinging on a balance between bearish liquidations and potential bullish catalysts.