1,178% Extreme Liquidation Imbalance Hits XRP

A closer analysis of the cryptocurrency derivatives market reveals a significant imbalance in liquidations, particularly affecting XRP. While the broader market may appear stagnant at first glance, liquidation data tells a different story, exposing a dramatic shift in trader sentiment.

Data from CoinGlass indicates that in the past 24 hours alone, liquidations across the crypto market reached a staggering $229.74 million. Notably, $160.9 million—an overwhelming 69.69%—was lost by traders holding long positions. This imbalance highlights a bearish trend, with long traders facing considerably heavier losses compared to their short-selling counterparts.

However, the most striking figure emerges from XRP futures trading, where the liquidation disparity hit an astonishing 1,178%. During this period, the total amount liquidated in XRP futures stood at $12.31 million, with just $963,050 of that attributed to short positions. This means that long traders bore the brunt of the market shift, experiencing liquidations over ten times higher than those who bet against XRP.

XRP Price Movement Amid Mass Liquidations

Despite the massive liquidation imbalance, XRP’s price only experienced a modest 5% drop. While such a decline may not be considered drastic within the highly volatile crypto space, it remains a substantial shift for an asset with a market capitalization of $137 billion. The liquidation figures reveal that traders were overwhelmingly optimistic about XRP’s short-term trajectory—perhaps excessively so—leading to a major long squeeze.

XRP now ranks as the third most liquidated asset across the cryptocurrency market, further emphasizing the scale of leveraged trading miscalculations.

Could a Reversal Be on the Horizon?

For traders seeking a silver lining, the sheer magnitude of the liquidation discrepancy could hint at a potential market correction. Historically, extreme imbalances in liquidation trends have sometimes preceded momentum shifts, as positions reset and traders adjust their strategies. However, whether this liquidation event signals an impending rebound remains uncertain and will require patience to unfold.

As the market digests these rapid shifts, XRP traders will be watching closely to see whether the liquidation wave has created an opportunity for renewed bullish momentum or if further downside pressure is on the horizon.

Disclaimer: This content is meant to inform and should not be considered financial advice. The views expressed in this article may include the author’s personal opinions and do not represent Times Tabloid’s opinion. Readers are urged to do in-depth research before making any investment decisions. Any action taken by the reader is strictly at their own risk. Times Tabloid is not responsible for any financial losses.

---

Follow us on Twitter, Facebook, Telegram, and Google News