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The Friday trading session brought an extraordinary development to the XRP derivatives market, where short traders took the full weight of liquidation pressure and paid the price in what can only be called a bear bloodbath.
As new U.S.-China trade war news headlines appeared, data from liquidation tracker by CoinGlass revealed $1.13 million erased, with almost $1.02 million tied directly to short positions, which is 1,000% more than long-side liquidations that barely reached $104,000. An imbalance is in full effect.
The trigger is visible on the price chart, as XRP broke from $2.19 to $2.29 in just an hour, reclaiming 4.42% in a clean vertical spike that stood in accordance with what can be seen on the Bitcoin and Ethereum charts, despite their combined liquidation tallies exceeding $39 million.
It was a textbook squeeze, where one side of the book evaporated and left no room for any sort of repositioning.
How U.S. vs. China tension affects XRP price
As mentioned above, macro signals amplified the setup. The U.S. government’s latest tone toward Beijing — confirmation of a top-level meeting in two weeks, the reduced 11% probability of 100% tariffs by Nov. 1, and explicit denials that a "trade war" is underway — all fed into risk markets’ instinct to rush back into financial markets, crypto included.
For the XRP price, this is still a very narrow path. Shorts overloaded into declining prices, only to see the floor pulled out once external headlines lightened the macro backdrop.
The result was not just a bounce but a full-fledged short squeeze, with a 1,000% liquidation imbalance right at the forefront of the derivatives market's "shopping window."
Dan Burgin
Vladislav Sopov
U.Today Editorial Team