In a stunning display of market volatility, XRP experienced an unprecedented surge of liquidations within one hour. According to CoinGlass’s data, the token saw $7.64 million in total liquidations over the past hour, with a staggering 98% stemming from long positions and just $140,000 from short positions. This extreme imbalance is evident in XRP’s price action – the asset plummeted from $2.20 before stabilizing near $2.16. The move likely triggered cascading liquidations, further contributing to the decline. 💰
While other cryptocurrencies saw varying levels of liquidation ratios throughout the day, XRP’s case stands out, suggesting a significant miscalculation or mispositioning among traders.
The broader market witnessed over $374 million in total liquidations within a 24-hour period, with over 162,000 traders caught off guard. Bitcoin and Ethereum led the charge with $33.68 million and $29.2 million in liquidations respectively, highlighting similar trends to XRP’s move.
But what exactly caused this dramatic shakeup? The exact reason behind this extreme imbalance is still unclear, leaving many to ponder whether it points to a systemic long bias in XRP trades or simply a one-off event before a trend reversal. 🤔