Ripple (XRP) experienced sharp volatility in the cryptocurrency market over the last 24 hours. According to CoinGlass data, a total of $7.93 million worth of XRP positions were liquidated. $7.21 million of this came from long positions and $718,000 from short positions. This brought the daily liquidation imbalance to a record 903%.
The XRP price fell from $3.04 to $2.98 during the day, falling below the critical $3 psychological support level. While the $2.90 level is currently being held as support, the market is showing no signs of a strong recovery.
The sharp decline was not limited to XRP alone.
- On the Ethereum (ETH) side, a total of $61.5 million worth of long positions were liquidated, while short losses were limited to $4.14 million.
- A similar picture was seen for Bitcoin (BTC): $35.1 million was liquidated, $33.1 million of which came from long positions.
The higher liquidation rate for long positions compared to short positions may indicate a weakening of buyer appetite in the market.
Some analysts suggest that the decline may be due to strategic price pressure from institutional investors rather than a simple correction. Black Swan Capitalist founder Versan Aljarrah and financial writer Jim Willie argue that institutions are holding back the rally to accumulate XRP at its low price.
“If it weren’t for these pressures, XRP could have risen to at least $7-$8 from its recent price movements,” Willie said, adding that institutions see XRP as a liquidity tool instead of the US dollar and take long-term positions.
*This is not investment advice.