XRP has continued its volatility battle, with the asset again failing to soar in price as anticipated by investors. This has sparked concerns about its rebound move as it registered a 785,700% liquidation imbalance in the last hour.
Bitcoin dominance weakens XRP’s recovery prospects
According to CoinGlass data, long position traders have suffered $202,180 in losses within the last 60 minutes as XRP momentum weakened. The asset climbed to an intraday peak of $2.88 before fizzling out as low trading volume could not support its climb.
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This triggered losses for bullish investors who were anticipating a sustained rally in the market. However, volatility continued as the price declined. As of this writing, XRP is changing hands at $2.82, representing a 1.14% decline in the last 24 hours.
Volume remains deep in the red zone by 25.02% at $4.53 billion. The asset’s technical chart shows XRP has slipped below its seven-day exponential moving average (EMA) of $2.85. This has further increased selling pressure and XRP’s fluctuations.
Additionally, the rise in Bitcoin dominance has worsened the threat to XRP’s rebound move as investor interest shifts from altcoins.
Meanwhile, short position traders also witnessed a mild loss of $25.73 within the same time frame due to the liquidation triggered by the price volatility.
XRP ETF approval, key catalyst for sustained rally?
XRP will likely continue to witness these price fluctuations until it finds a solid bottom. As per the Bollinger Bands indicator, the asset is still flashing warnings, which suggests that a breakout might not happen, particularly with the low volume.
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However, an outside catalyst like news of its exchange-traded fund (ETF) approval could trigger a sustained rebound. Despite the deafening silence from the Securities and Exchange Commission (SEC) on the approval of pending applications, many continue to believe that an XRP ETF will happen this 2025.
Nate Geraci of the ETF Store maintains that an approval is inevitable even as the SEC decision day inches closer.
