Potential 4% dip in XRP may ignite a $60 million bear market frenzy
Check Out the Latest XRP Updates on Google News * XRP's Sharp Volatility Warning* Over $60 million in potential liquidations on Bybit, Binance, and OKX
Currently, XRP is trading at about $2.12, according to CoinMarketCap stats.
While this cryptocurrency has observed a 11.36% upward trend over the past month, this bullish momentum may signal a surge in volatility.
New data from Coinglass unveils that approximately $60 million worth of long positions could vanish if XRP drops by merely 4%, reaching $2.063.
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Long positions generally symbolize optimistic bets that a cryptocurrency's price will continue to climb. In cases where the price moves in the opposite direction, the platform automatically mass-liquidates these positions to protect against further losses, a process known as forced liquidation.
The XRP liquidation chart displays a high concentration of long positions between $1.90 and $2.10, categorizing this as a critical zone for traders.
If XRP breaches the $2.063 threshold, it may spark a domino effect of liquidations totaling almost $64.24 million, making it one of the most significant XRP liquidation events in recent years.
A Ticklish Zone for XRP Traders
This represents a 4% drop from XRP's current value. This price range could witness large liquidations, given its significance, as severe liquidations at this level might cause further price drops, albeit temporarily.
As a result, traders and analysts remain vigilant about these levels. In crypto lingo, this sort of event is termed "stop hunt" or "liquidity sweep," where the price slips to a level that triggers these liquidations before rebounding.
XRP Avoids a Sharp FallArman ShirinyanShould XRP breach the $2.063 price mark, it would result in one of the most extensive XRP liquidation events in recent months.
Heaviest Hitters: Bybit, Binance, and OKX
Moreover, Coinglass information also highlights the platforms that would take the hardest hit should this liquidation occur. Bybit would be hit the hardest with over $7 million worth of long XRP positions likely to be liquefied on the platform when XRP's value dips to $2.063.
Binance and OKX follow closely behind Bybit, with around $3.39 million and $1.30 million in expected liquidations from long positions, respectively. In light of these potential outcomes, analysts advise traders holding long positions to reassess their leverage or set stop-loss orders to shield their positions from a potential drop.
As earlier reported by U.Today, XRP is seeing bullish activity once again after a few days of decline.
#XRP
Footnotes:
- https://coinmarketcap.com/currencies/ripple/
- https://cointelegraph.com/news/ripple-suffers-over-7-5m-in-liquidations-after-breaking-key-support-level
- https://www.coinglass.com/charts/xrp-liquidations
- If XRP breaches the $2.063 threshold, it may trigger one of the largest XRP liquidation events in recent months, affecting platforms like Bybit, Binance, and OKX.
- Bybit would be the most impacted by this potential liquidation event, as it currently holds over $7 million worth of long XRP positions.
- Analysts suggest that traders holding long positions should reconsider their leverage or set stop-loss orders to protect their investments in light of these potential liquidation events.
