XRP, the cryptocurrency tied to Ripple Labs, is trading at $2.12, having gained 11.36% over the past 30 days, according to CoinMarketCap. However, this rally may be reaching a critical threshold as fresh data from Coinglass reveals that a 4% dip—bringing the price to $2.063—could trigger liquidations exceeding $60 million. This would mark one of the most significant XRP liquidation events in recent months.
In leveraged trading, long positions are bullish bets on price increases. When the market moves against them, these positions are automatically liquidated to prevent further losses. Coinglass data shows a dense concentration of long positions between $1.90 and $2.10, making this a key support zone. If XRP drops below $2.063, it could spark a cascading liquidation event totaling $64.24 million.
Such liquidations can accelerate downward price movement, even if briefly, making this a closely watched level among traders. Analysts note that this type of event is often referred to as a "stop hunt" or "liquidity sweep"—a temporary price dip that clears leveraged positions before a potential rebound.
Among the most affected platforms would be Bybit, which could see over $7 million in long positions liquidated. Binance and OKX follow, with $3.39 million and $1.30 million, respectively. Analysts recommend that traders holding XRP long positions reduce leverage or place stop-losses to manage risk.
While bullish sentiment has recently returned to the XRP market, this precarious price zone could prove pivotal. With major liquidation thresholds looming, traders remain on high alert.
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