- XRP price fell 3.95% and tested the $2.40 triangle support level.
- Over $412K in leveraged XRP longs liquidated in one hour Monday.
- Daily close below $2.40 could open downside risk toward $1.80.
Ripple’s XRP is testing support at $2.40 after losing nearly 4% on Monday. The drop brings XRP to the lower edge of a key ascending triangle pattern. While this structure is typically viewed as bullish, the current price action is exhibiting signs of strain.
The triangle has flat resistance between $2.65 and $2.70, with support rising gradually from the $2.40 area. A break below this support line on the daily chart could invalidate the pattern.
If the price closes below $2.40, the next downside target sits near $1.80, based on the projected move from the triangle’s height.
Long Liquidations Signal Breakdown as Price Falls Sharply
According to CoinGlass, over $412,000 in XRP long positions were liquidated within an hour. Nearly all of the liquidated positions came from longs, while shorts accounted for just $3,200. This sharp imbalance suggests that many traders were caught in overleveraged positions as the price dipped.
On the one-minute chart, XRP dropped from $2.425 to $2.3817 with over 10 million tokens traded. Analysts noted that this was driven by forced liquidations rather than high-volume selling. The dip wiped out liquidity in the order book, triggering margin calls.
The sell-off resembled the rapid unwinding of long positions built up during recent price stability. Similar conditions were seen near $1.95 earlier in the year.
Short-Term Support at $2.25 as Momentum Fades
Analyst Ali Martinez noted that $2.25 could act as the next short-term support level if $2.40 fails to hold. XRP’s recent rebound from $2.38 has been weak, and volume has not confirmed renewed buying strength.
On lower timeframes, moving averages have started to flatten. This shows that bullish pressure is fading. Without new capital entering the market, XRP could continue sideways between $2.36 and $2.40.
If the price manages to reclaim $2.70 on a daily close, the bullish structure could resume. The next potential upside target is around $3.20, supported by EMA crossovers and increased trading volume.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. CoinCryptoNewz is not responsible for any losses incurred. Readers should do their own research before making financial decisions.
