XRP just faced a 1000% liquidation imbalance as its price dipped below $2.20! Massive long positions got wiped out in minutes
Recently, XRP belonging to Ripple has faced a lot of turbulence in the market due to a huge liquidation imbalance along with a fall in prices below $2.20. Investors and analysts are now raising eyebrows about the near-term future of the asset and the larger implications for the cryptocurrency market.
XRP Hit a new price low at $2.15 on Apr 30, 2025, sparking violent liquidation. The Coinglass dataset suggests, contrarily, that throughout 24 hours, approximately $13.9 million in long positions were liquidated against merely $1.49 million in short positions, resulting in an almost 1000% liquidation favoring the long side. The extreme liquidation suggests a strong long bias among the traders that, when coupled with sudden price decline, can intensify the downward pressure through cascading liquidations.
To make the matters worse, XRP has recorded its first single hour liquidation imbalance with a staggering 5,438%, with longs liquidated to the tune of $7.5 million while the shorts were liquidated at only $140,000. Such extremes into the positive or negatives are hardly seen, hence capturing the elevated risks of leveraged trading in a terribly volatile market.
After falling sharply, XRP made a small recovery, and as per trade in that direction, it now trades at the $2.23 level. Technical indicators paint a mixed outlook about the situation.
XRP, the Crypto asset of Ripple, has seen a lot of market turbulence lately, which was marked by liquidation imbalance and a heavy price fall below the threshold of $2.20. The scenario has raised questions among investors and analysts alike concerning the future short-term of the asset and the wider implications on the cryptocurrency market.
The recent volatility in XRP coincides with broader market movements. Bitcoin and Ethereum have also faced significant liquidations, with $33.68 million and $29.2 million in positions liquidated, respectively, within the same 24-hour period. This suggests a market-wide correction rather than an isolated event affecting XRP alone.
Despite the recent downturn, XRP has seen positive developments. Ripple's acquisition of Hidden Road, a broker handling over $10 billion in daily volume, and the launch of the RLUSD stablecoin, which has surpassed a $300 million market cap, are notable milestones. Additionally, over ten firms have applied for XRP spot exchange-traded funds (ETFs), with analysts forecasting high odds of approval.
XRP has a mixed outlook in the near term according to market experts. Some analysts expect a possible dip to $1.55, due to a failure to penetrate resistance levels and the growth of bearish technical patterns, while others remain optimistic and think that the recent flushing out of weak hands allows for a possibly bullish breakout if XRP can mount above $2.33 on the charts.
Eyeing key support and resistance levels is very critical in today's market circumstances, which exclusively favors cautious trading strategies, especially considering very highly leveraged environments. Investors ought to analyze support and resistance levels, keeping an ear to the ground with wider market developments that could affect price movements in XRP.
XRP's recent price drop, with its associated liquidation imbalance, underlines the volatility associated with the asset and the risks of trading with leverage. Technical indicators and recent market developments show mixed signals, and the next few days will be very significant in determining whether XRP finds stability and resumes its upward trajectory or succumbs to selling pressure.