XRP began the week with an unexpected downturn that shocked many investors. This significant volatility mirrored a broader downtrend in the crypto market. Amid the downturn, CoinGlass data reveals that a staggering 24.2 million XRP tokens were liquidated within 24 hours, amounting to approximately $11.4 million in value.
Most of these liquidations, totaling $10.21 million, originated from traders holding long positions. This indicates a sharp decline in XRP’s price, forcing investors to sell their holdings to prevent further losses. Conversely, short position traders experienced liquidations of $1.2 million.
The broader cryptocurrency market also witnessed significant liquidations, with Bitcoin and Ethereum leading the losses at $387.27 million and $358.32 million, respectively. Other prominent altcoins such as Cardano and Solana also suffered losses.
XRP’s price has exhibited a sideways trend in recent weeks, erasing gains accumulated over two weeks. However, it regained its footing following Judge Analisa Torres’s recent ruling. At the time of writing, XRP is trading at $0.62.
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The Cause of XRP’s Woes
The decline in XRP’s value coincides with several notable developments. Firstly, the protracted legal battle between Ripple and the Securities and Exchange Commission (SEC) created uncertainty and anxiety among XRP investors.
The consistent declines can also be attributed to Ripple’s monthly escrow release. While the escrow release is a routine procedure, it recently occurred amid a broader market downturn, potentially exacerbating price volatility. These factors have created a challenging environment for XRP investors.
The significant liquidations and price decline highlight the cryptocurrency’s susceptibility to market fluctuations and regulatory uncertainties. It remains to be seen how XRP will fare in the coming weeks as the market grapples with volatility and the Ripple-SEC case progresses.
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.
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