XRP just saw one of the most extreme liquidation imbalances in recent trading sessions as, in the past hour alone, the total liquidations on perpetual futures with altcoins added up to around $248,000.
What is astonishing is that nearly all of it, about $247,400, came from traders who were shorting the asset. In comparison, long liquidations were just $728, which puts the imbalance at an epic 33,928%.
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This kind of one-sided liquidation event usually points to a sudden move in price that catches a lot of traders off guard. Indeed, XRP saw a quick bounce above $2.10, recovering from earlier dips throughout the day.
While the move is not dramatic on the surface, the sheer size of short liquidations suggests that many traders had stacked up heavily on bearish bets — possibly expecting a further breakdown — and were squeezed out in a matter of minutes.
Across the general crypto market, liquidations in the same hour hit around $13.74 million, with shorts making up over $12 million of that, showing that the sell-side pain was not limited to XRP. Even so, the imbalance in this particular altcoin stood out by far, making it one of the most notable on the CoinGlass liquidation heatmap.
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It is worth noting that XRP has been especially wild in its price action over the last few days, with it swinging both ways, and traders had been piling into leveraged positions following a decent price run earlier in the week. This latest move seems to have caught a major chunk of shorts on the wrong side.
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Whether this is just a quick liquidation squeeze or the start of another leg up is not clear yet, but two things are for sure — XRP is once again front and center in the crypto trading space, and the market is not letting anyone get too comfortable.
Source: https://u.today/33928-liquidation-imbalance-stuns-xrp