Three Things to Know

• A $1 billion liquidation wave knocked XRP and the wider crypto market to fresh lows to start the week.
• XRP's daily momentum gauge sits deep in oversold territory, yet sellers still control the trend.
• Bulls now have to defend a floor just under the dollar mark, with little mapped support below it.

XRP extended its slide on Monday after forced liquidations swept through crypto markets. Leveraged traders who bet on a rebound were flushed out, and the token took one of the heaviest hits among large coins.

The timing hurts. XRP was already grinding lower for weeks, and spot ETF buyers stayed on the sidelines. Traders now want to know whether oversold conditions can spark a relief bounce before the dollar level gives way.

A $1B Liquidation Wave Drags the Market to Fresh Lows

Crypto markets opened the week in the red as roughly $1 billion in leveraged positions were wiped out. Forced selling hit traders who had bet on a rebound, and the losses spread quickly across major coins.

Bitcoin dropped to a fresh multi-month low of $73,500 on Nov 9. Ether slid close to $2,000, its weakest level since mid-August. XRP fell hardest of the three, losing about 6% on the day.

Total crypto market value shrank to around $2.56 trillion, down nearly 2%. Spot trading volume jumped about 28% to near $26.8 billion. That surge points to sellers rushing for the exit.

XRP had little support from big money going into the drop. Spot XRP ETFs recorded zero net flows from Nov 3 to Nov 6, with net assets of about $1.34 billion. No institutional bid was there to cushion the fall.

XRP Trades Well Under Both Long Averages

XRP (XRP) daily price with the nearest support (green) and resistance (red). Source: TradingView

XRP traded near $1.08 on Monday, well below the levels where buyers stepped in earlier this fall. The token now sits under both of the long-term averages that traders watch most closely.

The 50-day moving average, which tracks the average closing price over the past 50 sessions, stands near $1.30. The 200-day average sits higher, around $1.35. Price below both lines means each one now acts as a ceiling on any bounce.

With the 50-day below the 200-day, the shorter trend has already turned weaker than the longer one. Chart readers call this a bearish stack, and it tends to keep rallies short.

This week's drop did not come out of nowhere. XRP has lost about 13% in seven days and roughly 22% in a month. That pattern describes a steady grind lower, with the liquidation wave adding a final push.

The first real sign of a turn would be a finish back above the 50-day line. That would show buyers can absorb supply at higher prices again. Until then, the broader trend points down, and any recovery starts from well beneath both averages.

Sellers Stay in Control Despite Oversold Readings

XRP's daily RSI, a 0 to 100 gauge of momentum, has dropped to about 26. Readings below 30 count as oversold, meaning sellers have pushed the price down faster than usual. That stretch often comes before a short relief bounce.

An oversold reading does not mark a bottom, though. Prices can stay oversold for days when forced selling keeps hitting the order books. The token kept slipping in the last day, so the pressure has not lifted yet.

The MACD still sits below its signal line, which means downside momentum remains in place. Trend strength readings also show a fresh move taking shape, led by sellers.

Together, these signals leave any bounce without confirmation. Buyers would need momentum to turn up before a rebound can be trusted. For now, a quick pop could simply give sellers a better price to exit.

$0.99 Becomes the Line Bulls Must Hold

The nearest floor on the daily chart sits around $0.99, just under the dollar mark. The data shows no clear support beneath that level, so a break could leave XRP searching for buyers in open air.

Traders tend to defend psychological levels like a dollar. If that defense fails, stop orders below it could trigger another round of forced selling. That would echo the leverage flush that started the week.

On the upside, the first cap sits near $1.20. That area roughly marks where the latest breakdown began. Sellers who missed the exit there may use any return to cut their losses.

The next barrier stands around $1.31, close to the 50-day line. A move through that zone would erase most of the damage from the liquidation wave. It would also put buyers back in a position to challenge the longer trend.

Where XRP Goes Over the Next Three Days

Two paths stand out for the coming sessions, and the dollar area decides which one plays out.

• Bullish: Oversold momentum sparks a relief rally that ends with a daily close above $1.20. That would open a move toward $1.31, near the 50-day line. A drop back under the dollar floor would cancel this setup.
• Bearish: A close below $0.99 removes the last mapped floor and leaves downside open-ended. A recovery above the first ceiling would invalidate this view.

Bears Hold the Edge Until $1.20 Falls

For now, sellers keep the upper hand on XRP. The oversold reading leaves room for a relief bounce. Still, nothing on the chart points to a lasting turn until buyers reclaim that first ceiling.

The bigger risk sits outside the token. Another leverage flush in Bitcoin could drag XRP through its last nearby floor within hours, with little to slow the fall.

Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

Source: Crypto Daily