XRP Skyrockets 1,209% in 24 Hours in Abnormal Liquidation Imbalance

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As a seasoned crypto investor with battle-scarred fingers from numerous market upheavals, I find myself intrigued by the recent developments in the XRP market. The whopping $1.44 billion in liquidations within just four hours is a spectacle that even Wall Street couldn’t pull off without a few regulatory hiccups.

This week saw a significant selloff in the cryptocurrency market, triggering a large-scale liquidation event. Over $2 billion worth of positions, predominantly long ones, were forcibly closed. The impact of this event is still being felt, with approximately $300 million more being liquidated in the last day. However, as reported by CoinGlass, the nature of this event isn’t entirely one-sided.

Amidst the market’s turbulence, a striking irregularity has surfaced in XRP trading, which ranks as the third largest cryptocurrency. In the recent four-hour period, the liquidation of perpetual futures on XRP reached an astounding $1.44 billion. However, the number of shorts was relatively minimal at $111,000, while long positions amounted to just $1.33 million. This unusual imbalance, representing a staggering 1,209%, suggests a heavily skewed market sentiment towards XRP, offering insights into current feelings about this well-known cryptocurrency.

Essentially, a majority of traders are optimistic about XRP at this moment, particularly for short-term gains. But the market is currently penalizing those who have taken on too much risk or entered the trade too late, resulting in these differences among trades. There are also sellers around, but they represent only a small portion compared to the buyers.

The excessive tilt in XRP trading originates from the significant movement in the value of the well-known cryptocurrency. By examining the XRP’s price chart, it becomes clear why there’s been a strong preference for this token. Over the past two days, its value has spiked by more than 30% and is now being traded at approximately $2.40.

Given that the price of XRP has surged more than 400% in recent weeks and has been at the forefront of the entire cryptocurrency market, many saw an opening to join the trend. Nevertheless, as is often the case, those who joined late or failed to manage risks adequately experienced a bump, with only a minimal 2.9% drop during today’s trading period.

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2024-12-12 17:51