The XRP market recorded its biggest long liquidation figure yesterday as prices retested a low last seen in early August.
Yesterday, the broader crypto market witnessed an intense collapse, with the prices of most assets revisiting monthly lows. For instance, Bitcoin (BTC) dropped to its Aug. 5 support at $52,546. Despite a recovery back above $53,000, BTC closed the day with a 3.92% drop, the biggest intraday loss this month.
The crypto market crash came shortly after the bloodbath witnessed in the U.S. stock market. Notably, XRP did not escape the market collapse, posting similar losses, but showing resilience at the $0.50 psychological support threshold.
XRP dropped to $0.5026 yesterday, a low it last saw on Aug. 7, before eventually recovering. However, this crash was enough to trigger the largest cumulative long liquidation amount in the XRP futures market within the space of a month.
XRP Witnesses Long Liquidations
For context, yesterday, long XRP traders saw liquidations amounting to $3.58 million, per Coinglass data. The last time the market witnessed a similar figure was on Aug. 7, the day of the final judgment in the Ripple lawsuit. Of the $3.58 million, liquidations on Binance amounted to $1.82 million, accounting for 50.8%.
Meanwhile, Bybit saw the second-largest liquidation figure, with a total of $863,510 in long positions. On OKX, long traders lost $550,090 to liquidations, while CoinEX recorded $164,470.
Overall, over the past 24 hours, total liquidations have hit $4.22 million, with the $3.58 million attributed to long positions making up 84.8% of this figure. For short traders, liquidations came in at $636,450, possibly as a result of XRP’s recovery from the $0.5026 low.
Amid XRP’s collapse yesterday, several commentators pointed to possible selloffs triggered by emerging reports of Ripple chairman Chris Larsen’s support of Kamala Harris in the forthcoming U.S. presidential elections. The Ripple co-founder joined 87 other business executives to endorse Harris.
Market Attempts to Heal
However, market data negates the theory that XRP’s drop was due to selloffs from this news. From Sept. 5 to 6, the total crypto market cap crashed 6.42%, dropping below the $1.9 trillion level. This confirms that the bearish trend in the XRP market was a product of the broader crypto market downturn.
To further bolster this assertion, XRP has recovered by 1.34% this morning, trading for $0.5281, as the global crypto market cap rises 0.74%. Notably, XRP trade volume has also spiked 108% to $1.50 billion as traders re-enter the market following the bloodbath. Data shows there appears to be a resurgence of long positions.
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