- XRP’s price drop continues as short positions dominate market sentiment.
- Major XRP transfer sparks speculation about potential market moves ahead.
- Liquidation pressure and short interest fuel XRP’s ongoing price decline.
XRP has experienced a sharp decline today, dropping over 6% to a price of $2.82. This sudden drop has raised concerns among investors, especially as liquidation volumes continue to rise. According to Coinglass, XRP’s liquidation amount stands at $2.95 million, with short positions increasingly impacted. The price is under pressure, though the trading volumes have increased in the last 24 hours by $7.58 billion to indicate the overall bearish market attitude further.
Data highlights a growing imbalance between long and short positions. While liquidations of long positions total $2.89 million, short positions have increased to $60.05k, signaling rising bearish activity. This trend continues to push XRP’s price lower, further exacerbating the decline.
Additionally, XRP’s market cap has decreased by 5.86%, according to CoinMarketCap, which indicates a growing level of investor caution.
Also Read: Trending: XRP Army Sparks Outrage Following Recent GDP Data Published By US Commerce Department
The Influence of Short Positions on XRP’s Decline
A major contributor to the price decline is the rise in short position liquidations. As more traders bet against XRP, the market becomes increasingly volatile.
Its imbalanced liquidations between shorts and longs indicate that traders are positioning themselves for additional price declines, which strengthens the existing bearish trend. The market sentiment change highlights XRP’s short-term weakness in the market.
A Major Transfer Fuels Speculation
Adding to the uncertainty, a significant transfer of 30,500,600 XRP, valued at approximately $91.4 million, to Coinbase has triggered widespread speculation.
According to Xaif Crypto (@Xaif_Crypto), such large transactions often indicate a major shift in the market. The way and magnitude of the transfer, together with the anonymity of the sender, have raised the question of whether the transfer is an indicator of a possible sell-off or a planned market action.
XRP’s price decline can be attributed to the rise in short positions and the increasing liquidation pressures. In addition, the massive XRP transaction to Coinbase has increased speculation regarding the asset’s future. As the market waits for the next move, traders remain cautious, watching for any signs of further price fluctuations.
Also Read: XRP Set for Explosive Rally: Double Bottom Pattern Could Push Price to $5
