The XRP market experienced a significant setback yesterday, witnessing its largest long liquidation figure in the past month. This occurred as prices retested a low last seen in early August.
The broader cryptocurrency market also suffered a sharp decline, with most assets retracing to their monthly lows. Bitcoin (BTC), for instance, plunged to its August 5 support level of $52,546. Although it managed to recover slightly above $53,000, BTC closed the day with a 3.92% drop, the largest intraday loss this month.
XRP was not immune to this market downturn, experiencing similar losses but demonstrating resilience at the $0.50 psychological support level. The digital asset dropped to $0.5026, a low it last saw on August 7, before eventually recovering. However, this crash was enough to trigger the largest cumulative long liquidation amount in the XRP futures market within the space of a month.
XRP Long Positions Liquidated
According to Coinglass data, long XRP traders faced liquidations totaling $3.58 million yesterday. This figure was last seen on August 7, the day of the final judgment in the Ripple lawsuit. Binance accounted for the largest share of these liquidations, with $1.82 million, followed by Bybit at $863,510.
Overall, liquidations across the market reached $4.22 million in the past 24 hours, with 84.8% of this amount attributed to long positions. Short traders also experienced liquidations, totaling $636,450, possibly due to XRP’s recovery from the $0.5026 low.
Ripple Chairman’s Political Stance Raises Questions
Some commentators suggested that the XRP sell-off might have been triggered by reports of Ripple chairman Chris Larsen’s endorsement of Kamala Harris in the upcoming U.S. presidential elections. Larsen joined 87 other business executives to support Harris.
However, market data contradicts this theory. The broader cryptocurrency market experienced a significant decline during the same period, indicating that XRP’s drop was primarily a result of the overall market downturn.
Market Attempts to Recover
XRP has since shown signs of recovery, gaining 1.34% this morning and trading at $0.5281. The global cryptocurrency market cap has also risen by 0.74%, suggesting a potential market rebound. Additionally, XRP trade volume has surged by 108% to $1.50 billion, indicating increased interest from traders.
As the market continues to navigate this volatile period, it remains to be seen whether XRP can sustain its recent recovery or if further downward pressure is on the horizon.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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