If BTC fails to hold the $105,000 level, XRP may retest the $2 level.

Gate News bot reports that, according to VeloData, due to today’s market big dump, the unclosed contract XRP (OI) position has decreased by 140 million USD in the past 17 hours. The significant fall in OI indicates that high-leverage positions have been eliminated from the market, creating favorable buying opportunities.

In the past 12 hours, the fall of XRP has led to the liquidation of $23 million in long positions. This sudden big dump ended XRP’s 18-day tightening range, creating lower high and low points. By connecting the trend line with the oscillation points, a descending wedge pattern can be observed. Typically, a descending wedge pattern suggests the opportunity for a bullish breakout, but the opposite result occurred due to the following decline of Bitcoin.

In summary, the overall decline in the cryptocurrency market has caused the XRP price to return to the key support level of $2.139. Considering that this support level was the highest trading volume level on May 4th and triggered an 18% rebound, retesting this level may provide stable support. Absorbing the sell-off pressure in this area could lead to a bottom forming here.

Is the big dump in XRP prices coming to an end? From a technical perspective, the likelihood of a bullish trend is high. However, investors should pay attention to the rebound of BTC to confirm the potential formation of a bottom for XRP. If BTC fails to hold the $105,000 level, a significant pullback may occur, and it may even return to the $100,000 mark.

In this case, the high correlation between XRP and BTC will lead to a synchronous big dump. In this bearish environment, investors can expect the price of XRP to retest the psychological level of 2 dollars.

Source: CoinGape