XRP Price Dip Could Trigger $60 Million Bull Bloodbath
The cryptocurrency market has been experiencing a significant amount of volatility in recent days, with XRP, the cryptocurrency tied to Ripple Labs, currently trading at $2.12, according to data from CoinMarketCap. While the token has recorded an 11.36% gain over the last 30 days, this upward momentum could be setting the stage for sharp volatility.
A recent report from U.Today suggests that a 4% drop in XRP’s price could lead to a cascade of liquidations totaling nearly $64.24 million, making it one of the most significant XRP liquidation events in recent months. According to data from Coinglass, over $60 million in long positions could be wiped out if XRP drops by just 4%, reaching $2.063. This represents a critical zone for traders, as large liquidations at this level could further push down prices, even if it is for a brief period.
In leveraged trading, long positions represent bullish bets that a cryptocurrency’s price will continue rising. If the price moves too far in the opposite direction, the platform automatically liquidates these positions to prevent further losses, a process known as forced liquidation. The XRP liquidation map shows a high density of long positions between $1.90 and $2.10, marking it as a critical zone for traders.
As noted by U.Today, "If XRP breaches $2.063, it could spark a cascade of liquidations totaling nearly $64.24 million, making it one of the most significant XRP liquidation events in recent months." This region of possible liquidation is a critical price zone, as large liquidations at this level could further push down prices, even if it is for a brief period. Hence, traders and analysts often monitor these levels closely. In crypto circles, this type of event is called "stop hunt" or "liquidity sweep," where the price drops to a level that triggers these liquidations before rallying again.
The Coinglass data also showed the platforms that would be most affected should this liquidation happen. Bybit would be affected the most, as more than $7 million worth of long positions would be liquidated on the platform when XRP’s price drops to $2.063. Binance and OKX follow Bybit with $3.39 million and $1.30 million in expected liquidations from long positions, respectively. Hence, analysts suggest that those holding long positions should start reducing their leverage or set up stop-losses to protect their positions against the potential drop.
According to U.Today, "Bulls are returning to the XRP market after a few days of drops." However, this recent bullish momentum could be short-lived, as a 4% drop in XRP’s price could lead to a significant amount of liquidations. As reported by U.Today, it is essential for traders to monitor these levels closely and adjust their positions accordingly to avoid significant losses.
In conclusion, the recent surge in XRP’s price could be setting the stage for sharp volatility, with a 4% drop potentially leading to a $60 million bull bloodbath. As noted by U.Today, traders should be cautious and adjust their positions accordingly to avoid significant losses. With the cryptocurrency market being highly volatile, it is essential for traders to stay informed and up-to-date with the latest market trends and analysis.
The source of this article is U.Today, a leading cryptocurrency news provider. For more information, please visit https://u.today/4-xrp-dip-could-trigger-60-million-bull-bloodbath.
Sources:
https://u.today/4-xrp-dip-could-trigger-60-million-bull-bloodbath
https://CoinMarketCap.com
https://Coinglass.com
