TL;DR

XRP retraced hard after rallying to $3.65, clearing $1.3B in leverage during a healthy market reset. Analysts watch $2.80 support level closely as key VWAP zones offer potential downside cushion. 75M XRP sold on Upbit causes a dip, triggering $90M in long position liquidations.

XRP Pullback Follows New High

Ripple (XRP) reached a fresh peak of $3.65 last week, breaking above its 2018 high. The rally drew attention across the market, but prices have since pulled back to around $3.09.

Despite a small daily uptick, XRP remains down about 14% for the week. According to analyst Dom, this retracement cleared out nearly $1.3 billion in open interest, about 30% of the total. The move is being seen as a typical leverage reset after a sharp run-up.

$XRP update

The overall market saw a healthy flushout to wipe some of the leverage that built up over the last 2 weeks

This pullback wiped out nearly 30% of all open interest on XRP (1.3B)

This chart from last week shows a perfect retest of the last major level to flip

As… pic.twitter.com/3nu8oAunvu

Consequently, the drop brought XRP back to test a vital zone near $3.00. This area had previously acted as resistance and now appears to be a support line. Volume around this level remains thick, suggesting strong buyer activity.

Dom noted that the 1-month VWAP is holding near $2.86, while the 3-month VWAP sits lower at $2.57. Both levels can be supportive in case the price continues to slide down. Currently, traders have the $2.80 range as the critical closing level, which, should it be broken, could shift the short-term trend.

Chart Signals Still Favor Buyers

On the daily timeframe, both XRP/USD and XRP/BTC printed Dragonfly Doji candles. The pattern is typical of reversals or precedes new moves. Analyst CryptoWZRD states that the configuration remains constructive as long as the momentum remains positive on the next trend.

He’s eyeing a potential push back to $3.30, then $3.65, and possibly $4.60 if resistance levels break. Lower timeframes are also being tracked for short-term trades, with $3.18 as the level to watch for a breakout toward $3.40.

Whale Sell-Off Shakes Market

A large XRP sell-off on the Korean exchange Upbit added to the recent volatility. Around 75 million XRP was sold in a short span, overwhelming the buy side and sending the price down roughly 15%.

Meanwhile, the move triggered around $90 million in liquidations of long positions. With volume now lower and price hovering near key support, the next few days could determine whether buyers step back in or the trend weakens below $2.80.