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The XRP derivatives market has experienced a sharp cleanup of leveraged positions, catching the buyer camp off guard. Bulls counting on uninterrupted growth of XRP found themselves trapped — a cascade of forced closures created an abnormal imbalance between buyer and seller losses of nearly 29 to 1.
According to data from CoinGlass, total XRP liquidations over the past 24 hours reached $9.93 million. Of that, a massive $9.60 million came from leveraged longs. Bears (shorts), meanwhile, escaped with minimal losses of $330,620.
This enormous 2,809% imbalance clearly showed just how heavily leveraged the buyer camp had become.
How a small squeeze turned into an avalanche for XRP bulls
The market drama did not require a major crash. XRP was trading steadily around $1.037 when mild broader-market negativity — the crypto market lost more than $199 million in liquidations over the past 24 hours — pushed XRP lower.
The price of the token fell by just 2.2% to a local low of $1.014.
Under normal conditions, this would be an ordinary price fluctuation, but for traders using high leverage, this move lower triggered a domino effect. The first forced calls began putting pressure on the price, pushing it even lower and automatically liquidating the next group of market participants.
The XRP chart clearly illustrates the dynamics of this battle. Immediately after the morning drop to $1.014, the asset met strong spot demand. The price was bought back in a V-shaped recovery toward the $1.040 level.
This shows that large investors immediately used the opportunity to pick up cheap coins from liquidated leveraged traders.
In the evening hours, a second wave of profit-taking emerged in the market, locally correcting XRP to its current level of $1.0307.
The market has cleared out speculative excess, which makes the price structure healthier in the medium term. The main task for buyers right now is to hold the psychological $1.0300 level in order to avoid triggering another round of margin calls.
U.Today Editorial Team
Dan Burgin
