3,750% Liquidation Imbalance Stuns XRP Bulls
There have been some unusual trading patterns in XRP perpetual futures lately. According to liquidation data, there is a big 3,750% difference between long and short positions. CoinGlass data indicates that in just one hour, more than 97% of the $500,000 that was liquidated in XRP futures came from the long side, leaving just $14,000 tied up with the shorts.
This big difference happened at the same time as a small 1.5% drop in XRP's price. Earlier gains of 2.3% in the cryptocurrency's value had made traders feel good, so they were taking aggressive long positions.
But then, it all changed really quickly, and that led to a bunch of liquidations. This showed that some strategies were too risky because they were overleveraged, and some were not managed well.
The same phenomenon is occurring on the rest of the cryptocurrency market. In the last 12 hours, total liquidations across digital assets hit $79.28 million. Long positions accounted for $53.25 million of this, far outpacing the $26.04 million in short liquidations.
