On the first day of the new week, while the rise of crypto assets such as XRP and HBAR coin attracted attention in the cryptocurrency markets, it did not go unnoticed that Bitcoin experienced a small loss of value. It was observed that major cryptocurrencies such as Ethereum also experienced a decline. Following these price movements, liquidation data in the market also came to the fore. "Long" traders who expected a price increase were liquidated.
On Monday, there was a huge movement in the cryptocurrency market. According to CoinGlass data, more than $500 million worth of long and short positions in crypto asset futures were liquidated in the last 24 hours. However, some coins stood out amid this wave of liquidation. In particular, some cryptocurrencies surprised those who expected a decline and rose. Three crypto assets that increased their prices by an average of 22% in the last 24 hours were XRP, HBAR$HBAR
coin and IOTA. According to Dropstab’s top performers table, while these crypto assets are notable, they are all associated with projects that develop more enterprise solutions. XRP has grown significantly in the past month, adding over $100 billion to its market cap. With this development, it has taken its place as the third largest cryptocurrency in the morning hours. XRP is seen as a major player in the enterprise-focused cryptocurrency sector. Such assets tend to have a positive impact on their prices, even when the market is volatile.
When looking at liquidations, CoinGlass’ heatmap reveals that traders who invest in meme-focused cryptocurrencies are more affected. This shows that “serious” projects like Hedera and XRP are now leading the market trends. It’s also not surprising that major cryptocurrencies like Bitcoin (BTC) and Ethereum (ETH) are also at the top of the rankings. These two giants are seen as market-setting projects or indices. However, overall, this $500 million liquidation wave seems to have affected bullish traders the most. 63.3% of required positions are long positions.
The term “liquidation” in cryptocurrency trading can be intimidating for traders. Liquidation occurs when a trader is unable to meet the margin requirements for their leveraged position. It is important for traders to understand how liquidation works, why it happens, and how to potentially avoid it, which is important for anyone trading borrowed funds.
