As a seasoned crypto investor with battle-hardened resilience and a heart full of scars from past market turmoils, I must admit that this week’s liquidation event was a stark reminder of the wild west nature of our beloved digital frontier. Yet, amidst the chaos, an unusual spectacle unfolded in the trading of XRP – an imbalance so lopsided it made a three-legged donkey seem even-keeled.
This week, as a researcher studying the cryptocurrency market, I’ve observed an unprecedented liquidation event at the beginning of the week, where approximately $2 billion in long and short positions, predominantly the former, were forcibly closed. The aftershocks of this event are still being felt, with around $300 million more being liquidated over the past 24 hours. However, according to CoinGlass, the nature of this event is not entirely one-sided.
Amidst the financial chaos, there’s a peculiar phenomenon arising in the XRP market, which is presently the third-largest cryptocurrency. To put it simply, within the past four hours, the liquidation of perpetual futures on XRP amounted to a staggering $1.44 billion, yet only $111,000 were short positions and just $1.33 million were long positions. This massive imbalance of 1,209% strongly suggests the prevailing mood regarding this well-known cryptocurrency.
Essentially, many traders are optimistic about XRP at this moment, particularly for short-term gains. Yet, the market is penalizing those who have taken on excessive leverage or entered too late, resulting in these significant differences in trading activity. On the other hand, sellers who joined the game later are fewer in number.
The excessive skew in XRP trading stems from the significant surge in the value of the well-known cryptocurrency. Analyzing the XRP price chart reveals the reason behind the token’s bullish trend. Over the past two days, its price has soared by more than 30% and is now being traded at approximately $2.40.
As a crypto investor, I’ve noticed the surge in XRP’s price, which has skyrocketed by over 400% in recent weeks and attracted significant attention across the market. With this newfound popularity, it’s been tempting for many to hop on the trend. However, as we all know, timing and risk management are crucial in crypto trading. Unfortunately, those who joined late or failed to manage their risks effectively took a hit today, with XRP experiencing a minimal dip of 2.9% during trading hours.
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2024-12-13 11:25