$XRP coin witnessed
One of the most severe liquidation imbalances the market has seen in the past 24 hours, a stark display of market misalignment.
While $7.18 million in long positions were liquidated, according to CoinGlass, short positions were almost unaffected, with only $738,000 of them remaining. This isn't just an imbalance; it's a nearly 1,000% imbalance, with long-term traders taking almost the entire loss.
It didn't take a full-scale crash to cause it. It's true that $XRP fell by about 4% at the same time, but for cryptocurrencies, it wasn't a big deal.
However, for a market steeped in bullish bets, that was more than enough. When the price pulled back, it was enough to trigger a wave of liquidation among a crowd that clearly misunderstood the market's momentum.
Other major cryptocurrencies also saw higher liquidation volumes—$50.34 million and $35.62 million for #الإيثريوم and #البيتكوين , respectively—but none came close to the imbalance level of #الريبل . If you look at the charts showing the Ripple market, it's clear that it's a one-way market.
Long-term exposure was built up, and when the market moved slightly against them, there was no support to stop losses.
The situation was typical: high optimism, little downside protection, and no follow-through. The 1,000% liquidation gap occurred not because of extreme volatility, but because traders were overexposed to the same trend, and the market couldn't sustain it. Ripple shouldn't have collapsed.
The optimists were already overexposed - the market just had to ignore it, and it would have collapsed under its own weight.