A massive liquidation event unfolded on Sunday, as Ripple’s XRP token price suffered a sharp drop, plunging well below the $2.20 mark, according to blockchain analytics firm, CoinGlass.
At the apex of the sell-off, which saw $13.9 million in long positions liquidated versus just $1.49 million in short positions, XRP fell to lows of $2.15 before showing signs of recovery.
The staggering 1000% imbalance in liquidated positions highlights the critical juncture at which the market now stands.
The sell-off, which was driven by an overwhelming number of leveraged long positions, has left the market at a critical juncture. While some analysts see this as a necessary shakeout of weak positions and excessive leverage, others fear that more volatility and instability are looming.
“[An] 1000% imbalance in liquidated positions as $13.9M in long positions were liquidated vs $1.49M in short positions during the recent XRP price crash,” CoinGlass noted.
Indeed, as reported by CryptoSlate previously, the U.S. Securities and Exchange Commission’s (SEC) decision to pause its appeal against Ripple has brought a ray of hope, sparking optimism for more banking partnerships and institutional integration of XRP in the U.S.
This development, along with Ripple’s recent success with its RLUSD stablecoin—which has already surpassed a $300 million market cap—and the growing optimism surrounding the approval of XRP-based ETFs, bodes well for the token’s long-term prospects.
Furthermore, Ripple’s acquisition of Hidden Road—a brokerage that handles over $10 billion in daily volume—signals the increasing institutional integration of XRP, which could support its value moving forward.
However, traders must remain cautious as the market continues to navigate the fallout from the liquidation and broader market uncertainty.
