A sharp and sudden wave of liquidations has caught the attention of the XRP army, with data revealing an overwhelming skew in the direction of liquidated positions. In just one hour, XRP experienced a liquidation imbalance of 5,438% between long and short positions—an unusually high figure that points to a one-sided market shakeout. Heavy Liquidation on the Long Side According to data provided by CoinGlass, XRP saw $7.64 million in liquidations within a single hour. Notably, $7.50 million came from long positions, while short liquidations amounted to just $140,000. This indicates that over 98% of the liquidated volume during that window impacted traders, who were betting on the token’s continued rise. Source: CoinGlass The price movement that triggered this event was not dramatic in isolation. XRP dropped from approximately $2.20 to around $2.16, breaching a key psychological support level. However, in highly leveraged environments, even modest price shifts can cause widespread liquidations, particularly when automated systems trigger cascading margin calls. A Broader Liquidation Trend This liquidation event did not occur in a vacuum. XRP experienced a liquidation imbalance of 1,178% in late March, and this trend has continued into April. The broader cryptocurrency market underwent a substantial sell-off, with total liquidations exceeding $374 million across various assets over 24 hours. We are on twitter, follow us to connect with us :- @TimesTabloid1 — TimesTabloid (@TimesTabloid1) July 15, 2023 More than 162,000 traders were affected, with Bitcoin and Ethereum seeing significant impacts as well. Bitcoin recorded $33.68 million in liquidations, while Ethereum followed with $29.2 million, though neither asset exhibited the extreme directional imbalance observed in XRP. One notable data point from the wider market was a single liquidation order on OKX’s BTC/USDT trading pair, totaling over $5 million, among the largest isolated orders at the time. Assessing the Disparity The disproportionate liquidation of long positions in XRP raises important questions about market sentiment and positioning. The imbalance suggests that many traders may have been caught with inadequate risk management or overconfidence in a continued upward trend. Following XRP’s dip below $3 in early February, the asset experienced a one-hour liquidation imbalance of 1,450% , suggesting that investors were caught off guard by the drop. This led to a surge in liquidations as stop-losses and leveraged positions were triggered. It remains unclear whether this event signals a temporary correction or a potential shift in trend. However, the digital asset defied a liquidation imbalance with a notable surge in November 2024 and may recover despite the current state of the market. Disclaimer : This content is meant to inform and should not be considered financial advice. The views expressed in this article may include the author’s personal opinions and do not represent Times Tabloid’s opinion. Readers are urged to do in-depth research before making any investment decisions. Any action taken by the reader is strictly at their own risk. Times Tabloid is not responsible for any financial losses. Follow us on X , Facebook , Telegram , and Google News The post XRP Surges 5,438% In Liquidation Imbalance In Hour. Here’s the Significance appeared first on Times Tabloid .
