XRP, the cryptocurrency linked to Ripple Labs Inc., is experiencing significant turmoil amid the current market downturn.
According to data from CoinGlass, a staggering 24.2 million XRP has been liquidated in the past 24 hours. This high level of liquidation has raised concerns and questions about the digital asset’s current situation and its impact on the broader crypto market.
XRP Liquidations Reach $11.4 Million Amid Market Downturn
Recent data reveals that XRP has faced significant liquidation pressure, with approximately $11.4 million worth of XRP liquidated in the past 24 hours.
Long position traders contributed the bulk of this liquidation, totaling $10.21 million, while short traders accounted for $1.2 million. The predominance of long liquidations suggests a sharp drop in XRP prices, forcing many traders to exit their positions.
Overall, the crypto market saw cumulative liquidations exceeding $1 billion. Binance, a leading exchange, recorded a substantial portion of these liquidations. In addition to XRP, major digital assets such as Bitcoin (BTC) and Ethereum (ETH) experienced significant liquidations, amounting to $387.27 million and $358.32 million, respectively. Other altcoins, including Cardano (ADA) and Solana (SOL), also faced notable liquidations, with $4.2 million and $62.35 million, respectively.
XRP Faces 18% Drop Amid Increased Trading Volume and Escrow Release
XRP has recently experienced significant sideways movement, erasing gains made over the past two weeks. Currently, the cryptocurrency is down 18.05% on the daily chart, with its price at $0.488. Despite this decline, trading volume has surged by 213.9% to $3.2 billion, indicating renewed investor interest.The recent sharp drop in XRP’s value coincides with developments in the ongoing Ripple v. SEC case. A closed-door meeting between the parties was unexpectedly canceled, causing the case to stall and leaving the community anxious about the potential impact on XRP’s future.
Additionally, the timing of the price drop aligns with the release of 500 million XRP from escrow. Ripple conducts periodic releases of XRP from escrow to maintain market liquidity, which may also be influencing current market conditions.
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