If the price of XRP reaches $3 today, what will happen?
The price of XRP is currently consolidating around $2.51, at a peak state. Despite reaching 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 win and Gary Gensler's resignation announcement, Ripple's price has surged significantly, currently at $2.51. These factors may ensure further price increases. It is worth noting that the jump to $3 in early 2018 lasted only a short time before entering a consolidation phase that lasted for several years.
The current situation suggests that the XRP price may soon rise, potentially reaching $3. If this happens, there will be an unprecedented wave of short liquidations, as traders have been watching for this moment for years. A few will reap massive profits, but the rest hoping for further spikes in the Ripple token price will incur losses, as shorts worth $320 million will be liquidated.
A report by Coinglass on December 2 shows that the short liquidation amount is $42.81 million, while the long liquidation amount is $38.81 million. Given the higher short liquidation amount, those expecting the price of Ripple to fall will incur losses. Similarly, on December 3, 2024, the short liquidation amount is $44.15 million, while the long liquidation amount is $42.09 million, leading to many short liquidations. However, as long liquidation amounts increase, some traders who were over-leveraged during the downturn also face losses.
Interestingly, according to Coinglass charts, since short liquidations exceed long liquidations in both cases, this implies further bullish behavior. Overall, this could lead to the price of Ripple reaching $3. Additionally, the total short liquidation amount over these two days is $86.96 million, which has already led to many short traders facing losses. If $3 is reached next, the liquidation amount could exceed $320 million, leading to many losses, but this will also intensify buying pressure, resulting in further price increases for Ripple.
