The currency witnessed a
unusual increase in the imbalance of liquidations, with the ratio of long to short positions sharply rising by 8,466% over 12 hours. This surge is primarily attributed to concentrated liquidations in long positions, revealing a sudden and dramatic shift in traders' positions and their risk exposure.
According to the CoinGlass heat map, the currency experienced total liquidations worth $514,600 during this period. Of these, $508,040 came from long positions, while short trades contributed only $6,565 - one of the most disproportionate liquidations of the day.
Interestingly, all this occurred against a backdrop of relatively minor price movements. During the same 12-hour period, the currency traded within a narrow range, opening near $2.14998 and closing around $2.15417. The price then rose slightly to $2.15758 before declining.
Overall, the price recorded a small net gain of only 0.20%, which is quite different from the scale of long liquidations that were triggered.
Meanwhile, the liquidation activity coincided with broader market disruptions, with total liquidations across all assets reaching $36.40 million over 12 hours. To clarify, Ethereum saw the highest liquidation rate at $6.56 million, followed by Bitcoin at $3.25 million. The spike in Ripple liquidations was notable not because of its size but due to the nature of its one-sided structure.
The significant loss in long positions indicates that traders may have been surprised by a slight drop in price, leading to stop-losses in high-leverage long contracts. The limited short liquidations suggest that the market was heavily biased towards bullish expectations, which proved to be unsustainable even as the Ripple currency remained relatively stable.