In the past 24 hours, XRP has seen a big difference in the number of liquidations between those who are long and those who are short on the token on the perpetual futures market. Data from CoinGlass shows that the total liquidation of XRP derivatives during this period was over $780,000.
What really stands out, though, is the unequal nature of these liquidations. A whopping 97.43% — or $760,800 — came from long positions, which were bets on a rise in XRP’s price.
It looks like the collapse of these long positions is down to bulls, or buyers, trying to make the most of a potential price surge for XRP. Yesterday, the token saw a promising price increase of more than 1.5%, reaching a critical level around $0.54 per XRP, which got people feeling optimistic about a breakout.
But the market had other ideas. Instead of a breakout, XRP faced a sharp rejection, leading to a 1.6% drop in just 30 minutes. The situation got worse over the next few hours, as another wave of selling pressure emerged, pushing the token down by an additional 1.83%.
XRP: Price outlook
As a result, the bulls took the biggest hit, with 37.5 times more liquidations than the shorts during this volatile period, while XRP saw an overall decline of 3.37%.
It is unclear what will happen next, but it seems that XRP may stabilize around the $0.50 mark. This price zone is important because it corresponds to a dynamic price support line that first appeared in June 2022 and has shown it can hold up.
While XRP briefly held above this level during a remarkable summer rally, which saw the token surge by over 52% in just nine days, it looks like it may return to this key support level soon.