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An unusually high liquidation spike has hit XRP in the last 24 hours, setting up an imbalance with the long-to-short ratio difference soaring by 2,443%. The insane liquidation was largely fueled by sell-offs in long-position traders.
Longs wiped out after XRP rejection at $2.18
As per CoinGlass data, XRP’s total liquidation stood at $8.43 million within this time frame. Out of this volume, long position traders accounted for $8,110,000, setting up a much tilted liquidation in the XRP market.
This development indicates that investors who were anticipating a continued rally of XRP were stunned as the price suffered rejection just before it could hit $2.20. Notably, XRP flashed signs of breaching higher resistance levels, such as the $2.30 price, which might have boosted investors’ confidence.
However, after climbing from $2.09, its momentum faded at a peak of $2.18 in the last 24 hours. Traders betting short on XRP experienced fewer losses. Only $318,760 of their funds were wiped out in the unusual liquidation.
The slight price difference that triggered this massive liquidation implies traders were cautious in their expectations of XRP’s rally. Despite this, long traders still recorded a huge spike in losses, emphasizing the crypto market's unpredictability.
Bollinger Bands signal possible XRP rebound
Besides XRP, Bitcoin and Ethereum also registered liquidation imbalances, with long-position traders suffering more losses than those betting short on the assets. This suggests that investors in the broader crypto market were bullish about the price shift.
Meanwhile, XRP Bollinger Bands continue to signal a potential rebound for the coin to higher levels. Market participants are watching to see if further tightening could reduce the prevailing volatility that XRP has been facing.
As of this writing, XRP price was trading at $2.14, representing a 1.37% decline in the last 24 hours. Despite the price fluctuation, trading volume is in the green zone, up 23.17% at $2.23 billion.
Dan Burgin
Vladislav Sopov
U.Today Editorial Team