- XRP longs collapse as $1.26M liquidations shake leveraged traders.
- Derivatives imbalance leaves bullish XRP traders facing heavy losses.
- Market shock wipes out XRP longs amid broad crypto selloff.
According to data from CoinGlass, XRP traders endured heavy losses after a sudden liquidation wave swept through its derivatives market. In an hour, virtually all the hits were taken by long positions, with approximately $1.26 million worth of liquidations.
The disproportion between bullish and bearish bets was impressive. It was reported that there was a 32,474 percent difference between long and short contracts. Losses on short positions of less than $3,880 in the same period highlighted the extent to which positioning was lopsided.
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Market Pullback Deepens XRP Losses
XRP dropped close to $2.94, sliding around 5.7 percent in a single day and touching intraday lows near $2.92. The fall was consistent with a broader market correction that also put pressure on Ethereum, Solana, and Bitcoin.
Ethereum was the most liquidated, with long exposure liquidating to the tune of $174 million within 24 hours. In total, crypto markets experienced over $552 million in liquidations, an indication of how fast leverage can unwind when sentiment changes.
Longs Bear the Brunt of Liquidations
Most trading sessions show some balance between long and short contracts. This session, however, revealed an almost complete tilt against long traders. When XRP rolled over, the lack of downside protection exposed leveraged bulls.
As a result, the market lost much of its bullish stance. The derivatives market is now less heavy than it was yesterday, and traders have to reevaluate their positions.
Source: Coinglass
Cautious Sentiment Moving Forward
Whether this event sparks a rebound or adds to the ongoing correction will depend on how quickly leverage returns. The market players are now watching to see whether traders will re-establish positions cautiously or continue with aggressive bullish bets.
For now, XRP trades near the $3 level with reduced derivatives activity. The sharp liquidation wave has left traders wary, signaling a more cautious market environment in the short term.
Also Read: Ethereum Whale Exit Triggers Sentiment Shift as Price Pulls Back from Highs
