XRP experiences a liquidation of 721,735% in one hour.
The cryptocurrency market, which is always subject to extreme volatility, has been severely impacted this week.
XRP, one of the most closely followed cryptocurrencies, saw a sharp decline in its price, triggering an unprecedented wave of long position liquidations. This sudden downturn not only surprised traders but also sparked panic in the market, highlighting the inherent risks of using leverage in such a volatile environment.
Following the initial rise in XRP's price, a rapid decline led to massive liquidations.
A liquidation of 721,735% of long positions was recorded in just one hour, with a marginal impact on short positions.
Leverage and volatility played a significant role in this liquidation chain.
Traders should be aware of the risks associated with leverage and excessive speculation.
Rapid drop: Then the price fell below $2.29, which was enough to trigger a series of liquidations;
Massive liquidation: More than $474,000 liquidated from long positions in one hour;
Notable imbalance: Liquidation of 721,735% of long positions in just one hour, with a marginal impact on short positions;
Short position liquidation: Liquidation of short positions worth only $65, demonstrating a significant market imbalance.