Ripple effect: XRP plunge puts whale on brink of $8m liquidation
XRP, the native token of the XRP Ledger developed by Ripple, fell to $2.1533 and moved below the 50-day moving average.
It has dropped by over 36% from its highest point this year.
XRP‘s price dropped for three consecutive days, reaching its lowest level since May 8 as sentiment in the crypto market waned.
The ongoing XRP crash led to substantial losses, especially to leveraged traders. Hyperdash data shows that one whale has had an unrealized loss of $2.6 million as the crash accelerated.
The whale opened the trade at $2.3715 and applied a 3x leverage. It will be liquidated if it drops to $1.3949, down by about 35% from the current level.
Worse, the trader has other long positions on coins like Ethereum (ETH), Solana (SOL), Hyperliquid (HYPE), Cardano (ADA), and Cosmos (ATOM). All of these trades have accumulated large unrealized losses. His weekly unrealized loss was over $8.4 million.
XRP price has dropped this week because of the ongoing crypto market crash, with Bitcoin falling from a record high of $111,900 to below $104,000 on Friday.
The main catalyst for the decline was a TruthSocial post in which Donald Trump threatened a 50% tariff on European goods. The risk of escalation ended on Monday when he agreed to extend the deadline to July.
Trade risks resumed on Friday after Scott Bessent warned that talks between the US and China had stalled. He believes that only a Trump and Xi Jinping meeting can solve the crisis for now.
XRP also dropped as traders positioned for June, which is historically one of the worst-performing months in the crypto industry.
XRP price analysis: Will his trade be liquidated?
The daily chart bellow shows that the Ripple price continues its downward trend and has moved below the 50-day moving average.
The MACD indicator has dropped and is about to move below the zero line. The Money Flow Index has also pointed downwards.
The trader will be liquidated if the price drops to $1.3949. Risk of liquidation will be confirmed if it drops below two levels: $2 and $1.6129. $2 is a psychological level that coincides with the ascending trendline, while $1.6129 is its lowest swing on April 7.
