What Will Happen If XRP Price Reaches $3 Today
XRP's price is currently consolidating around $2.51, in a peak state. Although it reached an all-time high of $3.85 in early January 2018, the token has struggled for years amid the SEC's battle with Ripple. Fast forward to today, after Donald Trump’s victory and Gary Gensler’s announcement of resignation, Ripple’s price has surged significantly to $2.51. These factors may ensure further price increases. It is worth noting that the surge to $3 in early 2018 lasted only a short time before entering a consolidation phase that lasted several years.
The current situation suggests that XRP's price may rise soon, potentially reaching $3. If this happens, there will be an unprecedented wave of short liquidations, as traders have been anticipating this moment for years. A few will reap hefty profits, but the rest hoping for the Ripple token price to soar further will incur losses, as $320 million worth of shorts will be liquidated.
A report from Coinglass on December 2 shows that the short liquidation amount was $42.81 million, while the long liquidation amount was $38.81 million. Due to the higher short liquidation amount, those expecting a decline in XRP price will suffer losses. Similarly, on December 3, 2024, the short liquidation amount was $44.15 million, and the long liquidation amount was $42.09 million, leading to many short liquidations. However, with the increase in long liquidation amounts, some traders who were over-leveraged during the downturn also face losses.
Interestingly, according to Coinglass charts, because short liquidations exceeded the other side in both cases, this indicates further bullish behavior. Overall, this could lead to the XRP price reaching $3. Additionally, the total short liquidation amount for these two days is $86.96 million, which has already caused many short traders to face losses. If it reaches $3 next, the liquidation amount could exceed $320 million, resulting in many losses, but this would also intensify buying pressure, leading to further increases in XRP price.
