In a 24-hour span, Binance witnessed a significant $18.8 million worth of XRP positions being liquidated, with short sellers seemingly in the driver's seat.
Cryptocurrency Chaos: $18.8M in XRP Liquidations Wipe Out Traders
- MXC Liquidation Frenzy* Bybit's eye-watering XRP liquidations The great XRP sell-off: Market Volatility Peaks*
XRP traders are witnessing a stormy crypto landscape, with over $18.8 million worth of liquidations in the past 24 hours, as revealed by data from Coinglass. This bumpy ride is due to the tumultuous market, uncertain sentiment, and shifting regulations within the crypto scene.
Typically, liquidations happen during periods of aggressive price fluctuations when the market moves against leveraged positions. This time around, both short and long XRP traders, with $9.8 million in shorts and $9.01 million in longs, have felt the heat.
Bybit and Binance: Battleground for XRP
Leading the liquidation charge was Bybit, recording a stinging $7.28 million in XRP liquidations, with $2.58 million from short positions and a bulky $4.7 million from long positions. Right behind was Binance, which suffered a total of $7.08 million, mostly on the short side, representing 73.5% of liquidated positions, indicating an overly-bearish play.
On the flip side, OKX was the victim of a long trader purge, with $2.8 million in liquidations. Niche exchanges like CoinEx, Gate.io, and HTX also experienced losses exceeding $100,000, while affected platforms like Bitfinex and BitMEX could not escape the market frenzy either.
XRP liquidations: Back and forth
With equivalently distributed liquidations on both sides of the market, the XRP tribe appears evenly split. However, Binance's predominantly short liquidations hint at a price rally squeezing short traders, forcing them to buy back their positions and causing an immediate price spike.
While short sellers' quick reversal led to some price corrections on other platforms like OKX, where long traders suffered more, the regulatory unsettled environment surrounding XRP prices was a core catalyst of these fast-paced and volatile trading activities.
According to recent U.Today reports, Ripple and the U.S. Securities and Exchange Commission (SEC) have reached significant strides in their long-lasting legal battle, which may have fueled investor unease and precipitated the sharp market volatility.
Stay tuned to U.TODAY on Google News for updates on this developing story.
Data insights: XRP liquidations were primarily ignited by a sudden XRP price rally, regulatory uncertainty, and overall market volatility, affecting traders with leveraged positions across a broad spectrum of trading platforms.
1. Despite the XRP turmoil, some investors might find it prudent to diversify their crypto portfolio, considering stablecoins like USDT or DAI as a less volatile alternative for finance and investing.2. The staggering XRP liquidations have underscored the risks inherent in crypto trading, suggesting that even seasoned traders, often referred to as 'whales', can't always predict which way the bitcoin and Ethereum markets will go.3. In the China-based crypto world, while platforms like Bybit and Binance have led the XRP liquidation frenzy, others like OKX and CoinEx have also felt the crypto chaos, demonstrating the contagious nature of market fluctuations.4. The recent XRP liquidations, driven by factors such as price rally, regulatory uncertainty, and market volatility, highlight the transformative influence of technology on the finance sector, making it increasingly important for traders to stay informed about the latest ICOs and market trends.
