XRP Faces Massive 170% Liquidation Imbalance as Price Falls

With bearish volatility stirring most altcoins to new monthly lows, the price action of XRP has remained in the spotlight. Over the past 24 hours, the top coin had about a 170% liquidation imbalance as long traders were stunned as the rebound failed. With a new direction set for XRP investors, the prospects of a bullish recovery are thinning out overall.

XRP liquidation outlook

Per data from CoinGlass, XRP has recorded a total of $11.51 million in the past 24 hours. Long traders suffered a total loss of $10.64 million, while short traders accounted for more than $860,000 in total liquidations.

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The digital currency has consistently ranked high among assets that face intense liquidation over the past month. This is because XRP has showcased a unique price action that makes it easier for traders to be ambitious. 

At press time, the price of XRP was changing hands for $2.46, down by 4.05% in the past 24 hours. Before the Bybit hack from last week, the coin could potentially breach the $2.80 price mark. However, XRP’s price faced a rejection at $2.75 before this positive rally could play out.

The fluctuations of the past week forced a hasty bet by long traders, a move that has pushed many traders into losses.

Hopes for XRP price recovery

The broader digital currency ecosystem is volatile, with FTX unlocking events ahead. While XRP is insulated from the FTX estate, the overall poor industry sentiment is significantly weighing down the coin’s rebound attempt.

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However, a major trigger may emerge in the coming days, drawing precedence on the potential end to the Coinbase v. U.S. SEC lawsuit. The speculation is that Ripple Labs is likely next in line to see its case withdrawn, which might liberate the XRP price.

In the meantime, the XRP price is looking to hold support at the $2.40 mark, with the short-term resistance level pegged at $2.70.