Fear Grips XRP Market As Liquidations Top $6 Million – Details
03 Avril 2024 - 4:00PM
NEWSBTC
The cryptocurrency market continues to feel the tremors of a brutal
April Fools’ Day price crash, with XRP taking a significant hit. In
the last 24 hours, a staggering $6 million in XRP contracts were
liquidated, according to Coinglass data. This liquidation frenzy
can be attributed to the sharp price decline experienced by XRP on
April 1st. The new month began with XRP trading around $0.61.
However, a domino effect triggered by Bitcoin’s plunge below
$67,000 sent shockwaves through the market, dragging down XRP along
with other major cryptocurrencies. Related Reading: Canine
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Looking deeper into the liquidation data, a clear trend emerges. A
whopping $5.6 million of the liquidated contracts were long
positions, indicating that traders who bet on XRP’s price
increasing were forced out of their positions. Conversely, short
positions, which profit from price decreases, saw a significantly
smaller liquidation value of $324,200. Market Contrasts: XRP’s
Uncertain Path Interestingly, the situation on the spot market,
where actual cryptocurrency is bought and sold, presented a
contrasting picture. XRP’s trading volume surged by nearly 60%
during the same period when these hefty liquidations occurred.
While a surge in volume might suggest increased buying activity, a
closer look reveals a dominance of selling pressure. The price
action suggests that a significant portion of this volume resulted
in selling rather than accumulation. XRP price down in the last
week. Source: CoinMarketCap This trend of rising volume alongside a
falling price indicates that the downward momentum for XRP might
persist. If this selling pressure continues unabated, analysts
predict a potential drop in XRP’s price towards the $0.55 support
level. With these conditions in play, XRP’s future appears
uncertain. The token faces the risk of getting caught in a market
bloodbath. However, it’s important to acknowledge dissenting
viewpoints. Some analysts hold a different perspective and predict
a potential short-term upside for XRP, with a price target of
$0.74. Bitcoin is now trading at $66.117. Chart: TradingView XRP’s
Stable Funding Rate Amidst Bearish Sentiment Meanwhile, amidst the
bearish sentiment, a glimmer of optimism emerges from technical
analysis. Despite the high liquidation value, XRP’s funding rate
has remained stable. In simpler terms, a positive funding rate
implies that traders holding long positions (expecting a price
increase) are currently paying a premium to those holding short
positions (expecting a price decrease). Source: Coinglass This can
be interpreted in two ways. It could suggest that some traders
still believe in a potential XRP price increase, or it could
indicate that short sellers are willing to pay a premium to
maintain their bearish positions. Related Reading: Shiba Inu Fires
Up With 4,000% Burn – Price Rebound Coming? NewsBTC’s analysis
indicates that XRP’s Funding Rate currently sits at 0.030, slightly
higher than the predicted rate of 0.029. Should the Funding Rate
hold positive while the price continues to decline, those holding
long positions might not receive the usual funding payments. This
scenario could further exacerbate the bearish bias and empower
aggressive sellers. Featured image from Pexels, chart from
TradingView
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