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XRP traders just lived through one of those textbook hours that clean entire charts as, according to CoinGlass, over $412,000 in leveraged positions were wiped out, and almost every cent of it came from longs.
For comparison, short positions barely made a dent with a figure of $3,200, leaving a 13,600% imbalance that tells the whole story about the current state of the crypto market right now.
As always, the triggers are on the price chart of XRP. On the one-minute chart, the dip looked surgical — from $2.425 down to $2.3817 in under an hour, with more than 10 million XRP traded and most of it driven by forced liquidations, not active selling.
It was not panic, it was spot selling pressure on overleveraged futures positions. One could see bids vanish, candles thin out and the range that had been holding good for days finally give way without a fight, which is understandable in current extreme fear conditions.
The structure behind the XRP futures collapse is a usual story this fall — overleveraged longs built up during the calm stretch above $2.40, thinking sell pressure has exhausted. When the wick hit, margin calls did the rest.
What's next for XRP?
This was not bears taking control, just traders paying for greed the same way they did near $1.95 earlier this year — too much size, too little patience, same ending.
Now the liquidity sits lower, around $2.38 to $2.36, exactly where the next test should come. Unless new capital shows up to rebuild positions, XRP will likely drift sideways through the afternoon, trying to digest the wreckage left behind by that one brutal hourly candle.
Dan Burgin
Vladislav Sopov
U.Today Editorial Team