XRP’s 7,676% Liquidation Imbalance Exposes Overexposure
XRP faced a staggering 7,676% liquidation imbalance during August’s crypto rally, wiping out over $2.6 million in long positions within 24 hours. This spike in long liquidations drove the price down nearly 3%, breaching key support levels and revealing a structurally crowded trade. Unlike Bitcoin (BTC) and Ethereum (ETH), which saw both long and short liquidations, XRP experienced minimal short-side pressure, underscoring its vulnerability to one-sided market moves. Data from CoinGlass highlights the disparity, signaling that many traders were overexposed on leveraged longs. The rapid sell-off suggests potential for heightened volatility as the market seeks equilibrium. Traders should watch for resistance around $2.97 and consider adjusting leverage and risk management strategies. While XRP remains resilient near current levels, structural imbalances may trigger further corrections or choppy price action in the near term.
Bearish
The heavy long liquidations and extreme imbalance point to significant overexposure and one-sided market pressure on XRP. Unlike BTC and ETH—which saw clearing on both sides—XRP’s lack of short-side liquidations suggests that a crowded long book accelerated the sell-off. Historically, such liquidation spikes precede sharp pullbacks and elevated volatility as leveraged positions unwind. In the short term, XRP may face further downside or choppy trading as markets rebalance. Over the longer term, improved risk management and potential fresh catalysts could stabilize price, but structural imbalances warn traders to exercise caution.