The crypto market has seen a shocking shift in investors' sentiments, and XRP has shown a crazy price surge in the last hour.
Amid this sudden price surge, XRP has experienced a mild liquidation event during the period, according to data provided by Coinglass.
Following the event, XRP has seen its short traders suffer a massive liquidation bloodbath worth millions of dollars against traders who have placed their bets on the token’s upsurge.
XRP liquidation flips against bears
According to the data, the total amount of XRP liquidated over the last hour crossed a massive $5 million. While long traders had only been liquidated with just $595,000 worth of XRP, the sudden price reversal saw short traders suffer the most losses, with over $4.44 million of their XRP bets wiped off. This marked a massive liquidation imbalance of 7,457.83% in just an hour.
The one-sided liquidation, which favored the XRP bulls, happened when the third-largest cryptocurrency by market capitalization experienced a sudden reversal in market sentiment. This saw the price of XRP surge massively above the long-resisted $3 on August 22.
The massive price surge came as a surprise, as the token had started the day on the bear's side, falling as low as $2.8099 on the same day.
While the hourly liquidation trend had caught XRP bear traders off guard, it has bolstered the confidence of investors, restoring hopes for the anticipated $5 target.
XRP rebounds above $3
Following the rapid surge in the price of XRP, the asset now reflects a daily price increase of over 5% despite showing significant price declines during the early hours of the day. On Friday, August 22, XRP traded between an intraday low of $2.798 and an intraday high of $3.05.
Although the market appears to be faced with high price volatilities, the unexpected liquidation event suggests that the market might still be looking for some upside, causing traders to switch positions in efforts to avoid further losses.
While the rally had just started today with leading cryptocurrencies BTC and ETH also flipping positive after multiple days of trading downwards, it appears that the rally might be far from over. The rapid surge has returned the XRP bulls to the winning scene and poised them for more potential gains.
Dan Burgin
Vladislav Sopov
U.Today Editorial Team