XRP Overtakes Bitcoin in Hourly Futures Liquidations

In a surprising market development, XRP has surpassed Bitcoin in hourly futures liquidations, indicating heightened volatility and leveraged exposure for the altcoin.

According to updated data from CoinGlass, XRP saw $1.19 million liquidated in a single hour, outpacing Bitcoin’s $823,340 over the same period.

This abrupt shift highlights a significant level of trading interest in XRP.

According to the data, long positions absorbed the brunt of these losses, with nearly the entire liquidation amount attributed to traders anticipating a price increase. In contrast, short positions accounted for just $33,000.

The pattern was mirrored in Bitcoin’s case, though on a slightly smaller scale, where long traders also experienced most of the drawdown.

Volatility Heightens As Support Levels Break

The rising liquidation volume in XRP comes as the asset has shown limited strength. The asset recently slipped below a key support level of $2.1, highlighting weakening momentum.

However, it has since regained this level and is currently trading at $2.12.

This breakout was not decisive, and the price drop of over 6% over a week has intensified fears that the asset may fall below $2.1 again.

Recently, XRP has experienced notable liquidation events, and the concentration of liquidations in long positions suggests that many traders were expecting a bullish reversal that failed to materialize.

This mismatch between market sentiment and price action has not only triggered forced exits but may also contribute to further volatility if traders continue to take on excessive risk in anticipation of a rebound.

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XRP’s Market Prospects

While XRP shows signs of independent movement in the derivatives market, it remains closely tied to Bitcoin’s price direction.

Historically, XRP has reacted to major BTC trends, and a significant rally in Bitcoin could still catalyze recovery.

The broader macroeconomic environment also plays a crucial role in shaping trader expectations.

Market participants are closely watching upcoming U.S. Federal Reserve decisions, as any adjustment in monetary policy could affect investor sentiment across the crypto sector.

There are rumors that the Federal Reserve will adopt XRP for global transactions.

This has not been confirmed, but a favorable policy shift could reduce risk aversion and stimulate renewed capital inflows into the crypto market.

Additionally, recent reports suggest that XRP ETFs may receive SEC approval this month, and the community is excited for the digital asset’s reaction if these products are approved.

XRP faces a challenging environment, but multiple factors point toward a bullish reversal in the near term.

: This content is meant to inform and should not be considered financial advice. The views expressed in this article may include the author’s personal opinions and do not represent Times Tabloid’s opinion. Readers are urged to do in-depth research before making any investment decisions. Any action taken by the reader is strictly at their own risk. Times Tabloid is not responsible for any financial losses.