XRP Longs Liquidated In 182% Imbalance Shock

Violent return to reality for XRP traders. Within 24 hours, a historic imbalance in liquidations triggered instability in the derivatives market and trapped traders. While the crypto collapsed below $2.30, leverage turned against those betting on a continued rally. This seemingly minor technical setback raises questions about the solidity of the narrative surrounding XRP.

A sudden shock : 182 % imbalance

While Ripple secures a major institutional client, namely Guggenheim, the XRP futures market was shaken by an unexpected reversal. In the last 24 hours, a massive liquidation swept through a majority of long positions, generating a 182 % imbalance according to CoinGlass data.

This phenomenon occurred while many traders were betting on a decisive breakthrough of the $2.30 resistance, a prospect that quickly reversed.

XRP traders betting on a price increase were caught off guard by a sharp market reversal. This situation caused severe losses, with risks associated with leveraged bets in a volatile market.

Here are the key quantified facts of the imbalance :

• $7.95 million was liquidated on XRP futures contracts within 24 hours ;
• $7.63 million came from long positions, caught off guard by falling prices ;
• Short positions only generated $312,760 losses over the same period ;
• The XRP price dropped to $2.11, recording a 5.71 % decrease ;
• Trading volume fell by 4.71 %, or $2.8 billion.

This imbalance indicates excessive market exposure on a bullish scenario that became unsustainable. Traders expected a rebound towards $2.40 or even $2.50, but the lack of momentum and the overall crypto market correction invalidated this scenario.

Pulling back below $2.20, XRP triggered a cascade of liquidations that led to a rapid decrease in liquidity and short-term confidence.

Intact optimism and long-term visions

Despite this bearish sequence and the massive losses suffered by crypto traders, part of the XRP ecosystem continues to display firm optimism. Predictions persist of a short-term bullish reversal with a potential rise of Ripple’s crypto to $3.20.

Far from viewing this correction as a lasting bearish signal, some analysts see it as a technical breather in a larger bullish movement. This sentiment is fueled by fundamental factors that immediate volatility does not erase, notably speculation around an Exchange-Traded Fund (ETF) based on XRP, currently awaiting approval from the Securities and Exchange Commission (SEC).

In addition, the idea that institutional adoption could support the token’s bullish trajectory over the medium and long term. Bold predictions even envision XRP between $10 and $15 in the coming years, although these figures remain conditioned on favorable regulatory developments and confirmed adoption momentum.

From this perspective, the events of the last 24 hours are seen less as a cycle end and more as a turbulence zone on an still upward trajectory.

While the liquidation shock reminded us of the potential harshness of derivatives markets, it was not enough to alter Ripple’s project fundamentals in the long term. In the short term, increased caution is advised for traders. But in the longer term, structural investors remain watchful. The real issue now moves into the regulatory arena: approval of an XRP ETF could serve as a major catalyst.