Bitcoin Dominance and Low Volume May Hinder XRP Recovery Ahead of Possible 2025 ETF Approval

• Liquidation spike: 785,700% imbalance in the last hour

• Low volume: 24‑hour volume down ~25%, weakening momentum

• Technical risk: price below 7‑day EMA and Bollinger Band warnings

XRP price analysis: volatility and ETF outlook—read indicators, liquidation data and expert commentary to prepare for potential scenarios. Learn what to watch next.

What is driving the current XRP price volatility?

XRP price volatility is driven primarily by low trading volume, a recent 785,700% liquidation imbalance and rising Bitcoin dominance that shifts capital away from altcoins. Technical signals—price slipping below the seven‑day EMA and Bollinger Band contractions—increase the likelihood of further short‑term fluctuations.

How did liquidations affect XRP traders in the last hour?

According to on‑chain liquidation monitoring data, the market recorded a 785,700% liquidation imbalance in the last hour. Long traders incurred approximately $202,180 in losses while short traders saw smaller, offsetting losses of about $25.73. Rapid liquidations intensified intraday swings and reduced confidence among momentum traders.

Why is Bitcoin dominance weakening XRP’s recovery prospects?

Bitcoin dominance has increased, redirecting investor interest and liquidity away from altcoins like XRP. With capital concentrating in Bitcoin, altcoin volume falls, which reduces the market depth needed to sustain rallies. XRP’s intraday peak at $2.88 could not hold because lower bid depth amplified selling pressure.

What do technical indicators say about XRP’s next move?

Short‑term indicators show caution. XRP sits below the seven‑day EMA ($2.85) and Bollinger Bands indicate compression, which often precedes volatile breakouts but does not guarantee upward direction. Volume is down about 25.02% to $4.53 billion, a bearish signal for momentum continuation.

Could an XRP ETF approval trigger a sustained rally?

An XRP ETF approval remains the most significant external catalyst for a prolonged rally. Market participants and some ETF commentators expect approval momentum in 2025, which could restore investor confidence and attract institutional flows. However, until regulatory clarity is provided, price action will likely remain reactive to short‑term liquidity and technicals.

Frequently Asked Questions

How big was the recent XRP liquidation imbalance?

The liquidation imbalance reached 785,700% in the last hour, causing about $202,180 in long losses and smaller short losses. This amplified price swings and reduced confidence among leveraged traders.

What short‑term indicators should traders watch?

Traders should monitor 24‑hour volume, Bitcoin dominance, the 7‑day EMA and Bollinger Band behavior. Reclaiming the 7‑day EMA on rising volume would be a positive sign for momentum.

Key Takeaways

• Volatility spike: A 785,700% liquidation imbalance increased intraday price swings.
• Liquidity concerns: 24‑hour volume fell ~25%, weakening rally support.
• ETF catalyst: XRP ETF approval would be the clearest path to a sustained rebound.

Conclusion

Short‑term outlook for XRP price remains cautious: technicals and low volume favor further volatility while Bitcoin dominance diverts liquidity away from altcoins. The most meaningful shift would be regulatory clarity or an XRP ETF approval, which could bring institutional demand and a stronger recovery. Monitor volume, EMA levels and official SEC communications for confirmation.