XRP recently captured attention with a remarkable rise exceeding 2.5% within 24 hours. However, there were extraordinary liquidations impacting those holding long positions in crypto derivatives platforms seen in the hourly charts. CoinGlass data reported $803,000 in liquidations in XRP within an hour, mostly affecting long positions. This revealed a significant imbalance of 366,941% favoring short investors who faced only a symbolic $219 in liquidations. The price recovery from $3.10 to $3.20 triggered these liquidations, while daily trading volume soared by 62.7% to $6.6 billion.
Hourly Liquidations Shake Up XRP
Most of these liquidations in XRP coincided with purchases at the $3.10 level. Investors opting for long positions in altcoins incurred a rapid loss of $803,170 due to leverage effects. In contrast, short trades only suffered a loss of just $218. This striking difference arose from the squeeze occurring during the price rebound, highlighting an imbalanced risk distribution in the market.
Despite this hourly sell-off wave, XRP traded at $3.26 as of the report, according to CoinMarketCap data. The increased volume indicates some investors viewed the pullback as a buying opportunity. Analysts caution that aggressive liquidations in lower time frames aren’t sufficient for precise direction determination, although maintaining caution in leveraged trades is advised.
Whale Movements Propel Price Increase
Coinciding with XRP’s price rise, blockchain data revealed that large whale-level wallets became active again. Data disclosed a mysterious whale opened an XRP position of 5,175,112 tokens on the Hyperliquid exchange, totaling $16.62 million at an average cost of $3.20, using 2x isolated leverage.
Prior to this move, Whale Alert reported a $53.4 million transfer to Coinbase. Popular analyst Ali Martinez noted whales accumulated an additional 130 million XRP amid the decline. This accumulation trend supports a medium-term bullish expectation despite short-term selling pressure, proving resilient to rapid liquidation risks like those seen today.
