A wave of liquidations swept across the cryptocurrency market, significantly impacting XRP investors. Trades betting on XRP’s price rise saw disproportionate losses as prices corrected, with approximately $37.85 million worth of long positions being forcibly closed compared to just $360,000 in short positions. This 10,409% imbalance underscores the dominance of bullish leverage preceding the downturn.
The liquidation event occurred during a rapid price decline that pushed XRP from around $3.38 to $3.26. This drop triggered the cascade of forced closures for overextended long positions, amplifying market volatility within a critical hour. During this period, total cryptocurrency liquidations reached $167.79 million.
Over a 24-hour span, XRP recorded the second-highest liquidation volume across major cryptocurrencies, totaling $38.21 million. Only Ethereum witnessed greater liquidation losses at $44.68 million. The broader market impact was severe, with 175,039 traders collectively realizing losses of $507.85 million. Long positions accounted for the vast majority, representing $380.66 million of the total.
This episode starkly underlines the substantial risks inherent in highly leveraged trades, particularly for assets experiencing swings. Market sensitivity to price fluctuations became evident as concentrated long positions in XRP significantly exacerbated losses during this correction phase.