XRP long positions suffered over $8.1 million in liquidations after the asset failed to break past the $2.18 resistance level.
A 2,443% rise in the long-to-short ratio difference signaled a highly bullish market position that backfired as prices reversed.
XRP’s tightening Bollinger Bands and rising volume suggest continued investor interest despite the latest price correction.
XRP traders endured steep liquidations totaling $8.43 million in the past 24 hours after the asset failed to sustain its climb near $2.20. Data from CoinGlass confirmed that long-position holders bore the brunt, absorbing $8.11 million in losses. The sharp imbalance in the market created a 2,443% spike in the long-to-short ratio difference.
The liquidation spike followed XRP’s attempt to break through the $2.18 resistance level. The price had advanced from $2.09 earlier in the day, sparking expectations of a continued rally. However, the momentum quickly faded as XRP fell short of breaching the psychological $2.20 level. This triggered significant sell-offs from over-leveraged long traders, while short sellers recorded just $318,760 in losses.
Market Dynamics Shift as XRP Stalls
The sharp disparity in long versus short liquidation volumes reflects a highly bullish sentiment that failed to align with market movement. Many investors appeared to expect XRP to test higher resistance around $2.30. Instead, the coin’s failure to hold above $2.18 exposed long traders. The broader market sentiment also appeared skewed toward long positions, with similar liquidation patterns observed across Bitcoin and Ethereum.
Even though the liquidations have been sharp, the technical indicators suggest a possibility of a break. XRP Bollinger bands are in a consolidation process, which implies low volatility and a potential rally. At the time of writing, the price of XRP stands at $2.03, representing a 4.78% decrease over the past 24 hours.
Nevertheless, its 24-hour trading volume was resilient, going up by 46.32%, and the amount stood at $3.26 billion.
Market-wide is still bullish despite the volatility.
This liquidation activity shows how swiftly the mood may change in the digital asset sector. The negative sudden liquidation of XRP stands out and helps remind us that short-term resistance is a factor even in general bullish conditions. It seems even traders are becoming hypersensitive to price levels, which can cause a massive sellout of positions in a few hours.
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