According to U.Today, the cryptocurrency market experienced a significant liquidation event this week, with over $2 billion in long and short positions, primarily the former, being forcibly closed. This event continues to impact the market, with nearly $300 million liquidated in the past 24 hours. However, the nature of these liquidations is not as one-sided as before, as reported by CoinGlass.
In the midst of this market turbulence, an intriguing anomaly has emerged in the trading of XRP, currently the third-largest cryptocurrency. In the last four hours alone, liquidations of perpetual futures on XRP amounted to $1.44 billion, with only $111,000 being shorts and $1.33 million longs. This represents an abnormal imbalance of 1,209%, highlighting the current sentiment surrounding the popular cryptocurrency. Most traders appear to be bullish on XRP in the short term, but the market is penalizing those with over-leveraged positions or those who entered the market late. While late sellers are present, they are in much smaller numbers.
The roots of this unusual imbalance in XRP trading can be traced back to the price action of the cryptocurrency. Over the past two days, XRP's price has surged by over 30%, currently trading at $2.40. This bullish trend has been fueled by a remarkable 400% increase in XRP's price over the past few weeks, capturing the attention of the entire crypto market. Many investors saw this as an opportunity to capitalize on the upward momentum. However, as is often the case, latecomers and those who failed to manage their risk effectively were shaken off, with XRP experiencing only a 2.9% decline during today's trading session.
