XRP Bulls in Flames Amid 1,155% Liquidation Imbalance - U.Today

Despite the recent rally that saw XRP record daily gains of over 5%, the market is gradually slowing down, seeing its liquidation activity over the last four hours turn in favor of bears, according to data from CoinGlass.

While XRP has become a major topic of debate across the crypto community considering optimism for its predicted rally during the “Uptober” season and the growing buzz surrounding the XRP ETF decisions, it appears that momentum is gradually cooling down.

The data shows that XRP traders have barely participated in its derivatives market in the last four hours, with only $126.83K worth of XRP positions being wiped out during the period.

However, the mild liquidation trend was heavier on the side of XRP bulls as traders who opened long positions suffered the most losses with $117,470 in longs aggressively wiped out, while short traders only catered for just $9,360 out of the total liquidation.

Is XRP rally over?

The outsized liquidation trend witnessed during the period has seen XRP record a huge 1,155% liquidation imbalance as more traders have placed more bets in anticipation for a higher price surge for XRP.

Although the one-sided liquidation activity has happened in favor of bearish traders, the fact still remains that the activity highlights the renewed bullish sentiment driving XRP since the start of “Uptober,” as traders continue to bet for its upsurge regardless of the mid-hour dips.

Notably, the 1,155% liquidation imbalance is one of those extreme gaps that rarely passes unnoticed on the market. While the trend has sparked a bit of fear among traders as bears appeared to have won the liquidation session, analysts have predicted that the trend tends to position short-sellers for high vulnerability to a sharp squeeze if XRP returns to upside in the near hour.

While XRP still maintains a close above the $3 mark, its price has shown a slight reversal with a 1.26% decline over the last day. Hence, market watchers are curiously observing if the next move will show whether longs can rebuild and take advantage against bear traders or deeper liquidations are yet to set in.