- XRP dropped by 12.22% to $3.04 following muted investor reaction to VERT’s $130 million XRP Ledger tokenization announcement.
- Over $105 million in long positions was liquidated within 24 hours, making XRP the largest long squeeze across the crypto market.
- A golden cross formed on July 21, and a cup-and-handle pattern suggests a possible price recovery if XRP breaks above $3.39.
XRP fell sharply by 12.22% on July 24, bringing its trading price down to $3.04. The decline occurred just a day after Brazil-based firm VERT announced a $130 million tokenization initiative on the XRP Ledger, a move that failed to generate the expected upward momentum.
The price dip led to significant market liquidations. According to data from Coinglass, more than $112 million was liquidated from XRP long positions in the past 24 hours. Out of this total, $105 million belonged to traders who had anticipated an upward price movement. The liquidation volume for XRP exceeded even that of Bitcoin, which saw $76 million in long positions closed.
Market Reaction Diverges from VERT Integration Expectations
Traders had expected XRP to rally following VERT’s adoption of the XRP Ledger to tokenize a $130 million debt instrument. However, the anticipated bullish response failed to materialize, catching long traders off guard. This led to what is now one of the largest long squeezes in the crypto market for 2025.
Despite the price correction, XRP continues to trade above its support level. Analysts note that the recent movement forms a cup and handle pattern on the daily chart. This technical setup could signal a potential reversal if the price manages to break past the $3.39 resistance level.
Golden Cross Formation Suggests Possibility of Recovery
XRP had earlier formed a golden cross on July 21, a pattern where the 50-day moving average moves above the 200-day average. A similar pattern last occurred in August 2024, which was followed by a prolonged price surge. This historical setup may indicate room for a longer-term recovery.
According to market observers, when XRP retains its current support and the immediate resistance level is penetrated, the cryptocurrency may advance to about the level of the $6 mark. Nevertheless, the absence of new purchasing interest can curtail short-term advances and cause the additional depreciation to levels around $1.77 in case of the strengthening selling pressure.
