Usman Salis
XRP just had its worst day in weeks, plunging below the critical $3.00 level after over $500 million in long positions got liquidated. But here's the kicker - this wasn't a surprise to anyone paying attention to on-chain data.
The timing was off by a few days, but the outcome was textbook. When half a billion dollars in bets stack up on one side, the market has a funny way of clearing them out. That's exactly what happened today, proving once again that blockchain signals often beat traditional analysis to the punch.
Chart Breakdown Shows the Damage
Earlier this week, Onchain School flagged the massive pile-up of leveraged longs, warning that such imbalances usually end one way: with the market hunting for liquidity.
Key levels that broke:
- $3.00 support zone completely shattered
- 50-day and 200-day moving averages both breached
- Price crashed into the $2.83-$2.75 liquidation cluster
- Next support holding at $2.75, resistance back at $3.00-$3.11
The technical picture now looks decidedly bearish in the short term. XRP lost its key psychological level and slipped below major moving averages - classic signs that momentum has shifted. The selloff found its footing right where the heaviest liquidation clusters were sitting, which isn't a coincidence.
Why This Happened
This wasn't about news or fundamentals - it was pure market mechanics at work. When too much leverage builds up in one direction, smart money often pushes the other way to trigger a cascade. On-chain data makes these vulnerable spots visible before they get hit, giving savvy traders an edge.
The broader crypto market isn't helping either. Between ETF uncertainty, regulatory noise, and general risk-off sentiment, conditions were ripe for a leverage flush. XRP just happened to have the biggest target painted on its back.
The immediate outlook isn't pretty, but there's a silver lining. Flushing out half a billion in leveraged longs could actually clear the deck for a healthier move higher. The key now is whether XRP can hold above that $2.75 support level. If it does, we might see a bounce back toward $3.00-$3.11. Lose it, and $2.60 becomes the next stop.
Today's brutal selloff might hurt in the short term, but it could be exactly what XRP needed to reset for the next leg up.
Usman Salis
