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$XRP recently fell below the $1.40 level, triggering a wave of liquidations across leveraged markets and wiping out roughly $2 million in long positions.
Yesterday, $XRP investors briefly breathed a sigh of relief after the token overcame the bearish pressure that had weighed on its performance in recent days. As a result, $XRP climbed from $1.37 to $1.45, triggering liquidations among traders who had bet against the asset.
However, the relief lasted only briefly. Shortly after the rally, $XRP surrendered most of its daily gains and slipped back below the $1.40 level. This time, long-position traders bore the brunt of the pullback.
Key Points
- $XRP recently slipped below $1.40, triggering major liquidations in the derivatives market.
- Long positions accounted for 57.12% of the $3.51 million total $XRP liquidations recorded during the period.
- Short traders accounted for the remaining $1.51 million, or 42.88% of the liquidations.
- The largest wipeouts occurred on Binance, which recorded $1.6 million in $XRP liquidations.
$2M $XRP Long Bets Wiped Out
As the price dropped to around $1.39, traders expecting further upside were hit the hardest. Data from CoinGlass shows that roughly $3,820 in long positions were liquidated within the past hour, while short sellers recorded no liquidations during the same period.
Over a broader timeframe, the impact was more significant. In the past 24 hours, approximately $2 million in $XRP long leveraged positions were liquidated.
Notably, long liquidations accounted for 57.12% of the $3.51 million total $XRP liquidations recorded over the past day. Meanwhile, short-position traders accounted for the remaining $1.51 million, or 42.88% of total liquidations. According to CoinGlass data, the largest liquidations involving $XRP occurred on Binance, the world’s largest crypto exchange. Binance accounted for $1.6 million of the $3.51 million total $XRP liquidations.
Meanwhile, other major exchanges also recorded notable liquidations. Bybit followed with $1.05 million, while Bitget and OKX reported $422,440 and $278,740, respectively.
It is worth noting that $XRP’s liquidation imbalance contrasts sharply with the broader crypto market trend, where short traders accounted for the majority of liquidations over the past day. For context, the total market liquidation reached $371 million, with $206 million from short positions and $164 million from long positions.
Potential $XRP Liquidations
Although futures traders, particularly those holding long positions, have already incurred significant losses, further liquidations may still occur if $XRP continues to decline.
Data from CoinGlass’ liquidation heatmap indicates that about $39.84 million in $XRP long positions could be liquidated if the price falls to $1.35. Moreover, potential losses could climb to $46.43 million if the price drops further to $1.30.
Conversely, a rebound could trigger liquidations on the opposite side of the market. If $XRP rises to $1.42, approximately $18.81 million in short positions could be wiped out. Furthermore, if the price rallies to $1.45, as much as $38.19 million in short bets could face liquidation.