XRP experienced a significant market event characterized by a severe liquidation imbalance, resulting in substantial losses for long position holders.
The cryptocurrency saw approximately $2.61 million worth of long positions liquidated during the event. This mass liquidation occurred alongside a sharp price decline, driving XRP’s value down nearly 3% within minutes.
This price action caused XRP to breach multiple key support levels, ultimately reaching a low of $2.97. Analysis indicates the imbalance was driven by exceedingly heavy long exposure, with insufficient short positions to act as a counterbalance during the downturn.
Compared to similar events affecting major cryptocurrencies like Bitcoin (BTC) and Ethereum (ETH), the liquidation imbalance for XRP registered as far more extreme. This highlights XRP’s particular susceptibility to sudden and rapid market shifts under conditions of significant leverage.
Despite the intense sell-off pressure, XRP demonstrated resilience by stabilizing near the $2.97 price point. This event underscores the inherent dangers associated with maintaining overleveraged positions in volatile cryptocurrency markets.