XRP is trading at $1.14, below all major moving averages, as persistent selling pressure threatens to drag the token lower. With 75% of derivatives traders still holding long positions, analysts warn the setup is ripe for a crowded liquidation that could send XRP to $1.08 before any bounce.
Why the price action looks fragile
The current price of $1.14 marks a clear break below key technical levels. The 50-day, 100-day, and 200-day moving averages all sit above the current price, a configuration that typically signals bearish momentum. Order-flow data shows active sellers dominating, with more supply hitting exchanges than buyers are absorbing. That imbalance has kept the token under pressure for several sessions.
The threat of a crowded long squeeze
Three out of every four derivatives traders are betting on XRP going up. That's a heavily lopsided market. When an asset trades below its moving averages and the majority of speculative capital is long, the risk of a cascading liquidation event spikes. If XRP slips another 5% toward $1.08, a wave of margin calls and stop-loss triggers could accelerate the decline — the very move that bears are targeting. The setup is textbook: a crowded trade facing a market that keeps pushing lower.
What $1.08 means for the next move
Bears are eyeing $1.08 as the next key support level. That's roughly 5% below current prices. A drop to that zone would wipe out a meaningful chunk of open long positions, and the forced unwinding could create enough selling to test even lower levels. Recovery, if it comes, would likely require a decisive shift in order flow — heavy buying at the $1.08 area — or a change in the broader market mood. Right now, neither is visible.
Traders are left watching the order books. If selling continues at the current pace, XRP could reach $1.08 within days. Whether that level holds or breaks will determine the next leg for a token that has spent weeks losing ground against its own averages.
