What to know:
- XRP short sellers lost $4.2 million as prices unexpectedly rebounded.
- Bearish positions represented 72% of XRP liquidations across exchanges.
- Bullish technical signals emerged as XRP reclaimed key resistance levels.
A market update shared by crypto analyst Diana highlighted an unexpected shift in XRP trading activity as bearish positions unraveled across major exchanges. According to the analyst, more than $4.2 million in XRP short positions were liquidated within 24 hours, signaling that a large portion of traders had been positioned for further downside before the token reversed course.
Diana linked the liquidation surge to XRP’s recovery above key short-term technical levels, noting that buyers regained momentum while several bullish indicators emerged simultaneously. Her analysis suggested that the rally not only caught bears off guard but also triggered a chain reaction of forced position closures that amplified XRP’s upward move.
What Caused the $4.2 Million XRP Liquidation Event?
According to Diana, XRP’s recent recovery caught a large number of bearish traders on the wrong side of the market. Many traders had opened short positions expecting the asset to continue moving lower. Instead, XRP reversed direction and began climbing higher, creating pressure on those bearish bets.
As losses increased, many short positions were automatically closed by exchanges once margin requirements were no longer met. This process triggered a wave of liquidations that erased more than $4.2 million in XRP short positions within a single day.
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🚨72% Of XRP Liquidations Were SHORTS — OVER Over $4.2 MILLION In Bearish Bets WIPED OUT In Just 24 Hours 🚀🔥
The bears were expecting $XRP to FALL.
Instead, they got LIQUIDATED. 😳
Over the last 24 hours:
✅ TOTAL XRP liquidations: $5.82 million
✅ SHORT liquidations: $4.2… https://t.co/J5eEIeI4HJ pic.twitter.com/Eyq5BnCZjk
— Diana (@InvestWithD) June 7, 2026
Because liquidated short positions require traders to buy back XRP, the process added further buying pressure to the market. Consequently, the rally gained additional momentum as more bearish positions were forced to close.
Diana noted that short liquidations accounted for 72% of XRP’s total liquidations during the period, highlighting how heavily traders had positioned themselves against the asset before the rebound began.
The analyst reported that XRP recorded $5.82 million in total liquidations during the past 24 hours. Short traders accounted for approximately $4.2 million of those losses, while long traders lost about $1.63 million. The figures also placed XRP among the most liquidated digital assets in the market, ranking fourth behind Bitcoin, Ethereum, and Solana.
Technical Signals Turn Bullish
Beyond the liquidation figures, Diana highlighted several technical developments supporting XRP’s rebound. The analyst stated that XRP reclaimed a descending trendline on the one-hour chart while posting a daily gain of around 5%.
Moreover, the Ichimoku Cloud flipped green, suggesting improving short-term market conditions. At the same time, the 20-period exponential moving average crossed above the 50-period exponential moving average, a signal often associated with strengthening momentum.
Buy volume also increased during the recovery, indicating renewed demand from market participants. Furthermore, XRP broke above a short-term descending resistance trendline that had previously limited upward movement. According to Diana, the current structure resembles a cup-and-handle formation on the one-hour timeframe.
The analyst identified the $1.19 to $1.20 range as the next major resistance zone. Beyond that level, attention could shift toward $1.25. A move above $1.30 would provide stronger confirmation that buyers have regained control of the market.
The liquidation of more than $4.2 million in XRP short positions reflects how quickly sentiment can change when price momentum shifts. With buyers regaining strength and several bullish indicators emerging, traders are closely watching whether XRP can maintain its recovery and challenge the next resistance levels.
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