XRP’s resistance to bearish trends has caught the attention of the cryptocurrency market, marking a notable shift in sentiment
The first day of 2024 not only ushered in a new year, but the cryptocurrency market experienced a classic roller coaster ride, with XRP taking center stage as it demonstrated its ability to withstand bearish sentiment. According to CoinGlass data, the cryptocurrency market's liquidated positions were worth up to $161 million in the past 24 hours, of which 81.8% were short positions.
Meanwhile, XRP outperformed, with short positions liquidated to the value of over $500,000, 13.57 times more than long positions. Despite the ongoing bearish pressure, XRP price managed to achieve a small increase of 2.14%, currently trading at $0.634 per coin and remaining within the range established in early November.
The general sentiment among market participants towards XRP is bearish, a trend that is clearly reflected in trading strategies.
However, the real challenge is figuring out whether the main driver is the price movement itself or the liquidation of short positions. It appears that a combination of huge leverage and inadequate risk management led to even minor upward moves triggering widespread liquidations.
What comes first?
The market’s current behavior raises a key question — is XRP’s rally a cause or a result of bearish traders capitulating? Some analysts believe that short liquidations could serve as a catalyst for XRP’s price to rise, turning the tide in favor of bulls.
The battle between bulls and bears in the XRP space remains intense, making it a focal point for investors and traders navigating the unpredictable waves of the cryptocurrency market.
