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.