MEXCXRP Sees $3.27M Liquidations in One Hour as Price Takes a Hit
Highlights
- XRP price crashed today, resulting in a $3.27M loss in long liquidations.
- The XRP trading activity shows a 76% surge, but the sellers dominate the chart.
- Analysts warn of a further crash to $2 if it loses the key support.
An unexpected surge in selling pressure resulted in the broader crypto market turmoil, including an XRP price crash. The crypto assets were making significant gains hours earlier, with the Bitcoin price rallying to $107k. However, the shift in investors’ sentiments resulted in this sudden decline, bringing $3.27M in liquidation for the Ripple token in just one hour. Let’s discuss.
XRP Price Crash Results in $3.27M Long Liquidations
The Ripple token has witnessed an exceptionally serious liquidation event, losing $3.27M in long positions with the XRP price decline. Interestingly, this rate is 36,283% higher than the short positions, revealing that bullish traders were massively affected.
Besides, only $9,040 worth of shorts were liquidated in this period, whereas $3.27M were in the long, per CoinGlass reports. This is because short traders actually bet on the price decline, so they avoided liquidation and instead profited from the dip. Experts showed concerns about this unusual longs vs shorts ratio for such a top altcoin.
This happened as the selling pressure increased on the token amid the crypto market crash, resulting in the forced liquidation. As a result, the investors’ leverage positions were forcefully closed due to achieving the loss threshold, starting a series of cascade effects or a series of liquidations.
XRP Price Prediction: Is $2 the Next Target for Ripple Token?
The cascade liquidation effect has resulted in further Ripple token price crashes, and the charts also show a continuous series of red candles. As a result, a fear of a further crash builds, as the token trades at $2.31 after a 3.2% drop. However, its trading volume is at $4.13B after a 76% surge, showcasing increased seller activity amid the crash.
Experts like Ali Martinez have been warning of a crash to $2 if it loses the $2.30 support, which is closer to the current price. Other analysts’ XRP price predictions have also projected the same, as the selling pressure is imminent.
Besides, there are no strong catalysts for the recovery except the CME Group’s XRP Futures ETF, which is going live today. Experts believe it could gain $50M in trading volume on the first day or more. If this happened, it could influence the Ripple token’s price. However, that is just speculation at present, so investors need to remain cautious.
Frequently Asked Questions (FAQs)
1. What caused the sudden XRP price crash?
2. How many shorts and longs got liquidated?
3. Why can the XRP price crash to $2 next?
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