A sudden price surge in XRP led to substantial liquidations across cryptocurrency derivatives markets. The token’s unexpected rally from approximately $2.92 to above $3.30 within a short timeframe resulted in significant losses for bearish traders.
Data reveals shorts faced $28.93 million in liquidations during the surge, markedly exceeding the $10.04 million recorded for long positions. This created an $18.89 million liquidation deficit for traders betting against XRP, highlighting the amplified risks during rapid price appreciation.
While XRP’s liquidation volume ranked among the highest across cryptocurrencies for this event, it remained considerably below Bitcoin’s $238.44 million liquidation volume during the same volatile period.
The event underscores critical hazards of leveraged trading, particularly for volatile assets like XRP. Market analysts emphasize this serves as a firm reminder for traders to manage exposure thresholds and maintain robust risk controls, especially during periods of heightened market turbulence to avoid liquidation cascades.