XRP suffers massive liquidation after price drop
A violent return to reality for XRP traders. In a span of 24 hours, a historic imbalance in liquidations triggered instability in the derivatives market and trapped traders. As the cryptocurrency fell below $2.30, leverage turned against those betting on a bullish continuation. This seemingly insignificant technical setback calls into question the strength of the narrative surrounding XRP.
While Ripple secures a major institutional client, in this case Guggenheim, the XRP futures market was shaken by an unexpected twist. In the last 24 hours, a massive liquidation dragged down most long positions, creating an imbalance of 182%.
Despite this downward sequence and the massive losses recorded by crypto traders, part of the XRP ecosystem continues to show clear optimism. Predictions persist about a short-term bullish turnaround with a potential rise of Ripple's cryptocurrency to $3.20.
Far from considering this correction as a lasting bearish signal, some analysts view it as a technical pause within a broader bullish movement. This sentiment is fueled by fundamental factors that immediate volatility does not erase, especially speculations surrounding an Exchange-Traded Fund (ETF) based on XRP, which is currently awaiting approval from the Securities and Exchange Commission (SEC).
In addition, the idea that institutional adoption could sustain the token's upward trajectory in the medium and long term is gaining traction. Bold predictions even suggest an XRP between $10 and $15 in the coming years, although these figures remain conditioned on favorable regulatory developments and confirmed adoption dynamics.
