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XRP just posted one of the nastiest liquidation imbalances seen on the market this hour, with long positions taking a big hit. Out of $792,320 in total liquidations, $779,070 came from longs and only $13,250 from shorts. That makes the long-to-short ratio an epic 5,840%, turning it into the most imbalanced liquidation event among major tokens in this time frame.
What's even more surprising is that XRP liquidation volume actually came in higher than of Bitcoin.
So, BTC saw $574,690 in total liquidations during the same hour, with no major deviation in direction. In a space where Bitcoin usually dominates these metrics, XRP leading both in size and imbalance is a clear sign of overexposure on the long side.
The market's total liquidations for the hour added up to $15.34 million, and most of those were long positions - $13.32 million to be exact, compared to just $2.02 million from shorts. Even though that general trend was already leaning toward long-side risk, XRP's data took it a step further with almost no short positions liquidated at all.
It is interesting that XRP's price did not change much during that time. It mostly stayed between $2.58 and $2.61, with no big dips. This suggests that these liquidations were not caused by a major sell-off but rather by tight leverage and poor positioning. Even small fluctuations were enough to trigger margin calls.
This kind of liquidation activity usually means there is too much competition on the market. When a lot of traders bet in the same direction with high leverage, it does not take much price movement to quickly unwind positions.
It is not a huge event in terms of money, but the way it is set up and the size of the imbalance are unusual. For now, it just shows that the market is still pretty reactive and fragile when it comes to leveraged positions, especially in altcoins like XRP.
Vladislav Sopov
Dan Burgin