XRP witnessed a dramatic liquidation imbalance favoring the downside during a recent price rebound near the psychologically significant $3.00 mark, signaling potential brewing bullish pressure.
Data reveals a stark disparity in trader losses over the last trading hour. Short positions betting against XRP suffered liquidations totalling approximately $414,800. In stark contrast, liquidations on long positions were negligible, totaling just $812.87. This resulted in a liquidation imbalance exceeding 51,000% against short sellers.
The massive wave of short liquidations coincided precisely with XRP’s price climbing back above $2.98, recovering from a dip below $2.95 earlier. This sharp price movement concurrently wiping out shorts strongly suggests a short squeeze scenario unfolding as the asset rebounded.
This liquidation profile was notably unique to XRP. Other major cryptocurrencies, including Ethereum and meme token BONK, experienced significantly more balanced liquidation patterns during the same period.
Analysts point to the extreme liquidation imbalance potentially indicating trader misjudgment of XRP’s underlying price resilience near key support or a necessary technical reset. Such events can often clear out excessive short interest.
The forced closure of these positions may have provided upward momentum, potentially laying the groundwork for a more sustained upward trend if buying pressure persists. Market participants are advised to closely monitor the crucial $3.00 level as a pivotal point dictating XRP’s next major directional shift.