XRP Short Squeeze After 404% Liquidation Imbalance

Published: 2025-10-26 15:59:15 |

XRP experienced two notable short squeezes in October. On October 17, easing US–China trade tensions triggered $1.13 million in total derivatives liquidations, with $1.02 million in XRP short positions wiped out—a 1,000% imbalance—and a sharp price rise from $2.19 to $2.29. On October 26, another squeeze forced $4.77 million of XRP shorts to liquidate. Total liquidations hit $5.95 million, a 404% short imbalance, lifting XRP/USDT from $2.57 to $2.64 on Binance. Meanwhile, Bitcoin and Ethereum saw combined liquidations of over $100 million. Traders should monitor XRP open interest, funding rates and support levels. The events underscore the risks of leveraged shorts and the volatility driven by macroeconomic headlines in the derivatives market.

Bullish

The repeated XRP short squeezes showcase strong bullish pressure in the derivatives market. Large liquidation imbalances on October 17 and October 26 drove swift price gains, indicating that overloaded short positions can fuel rapid rallies. In the short term, traders may face heightened volatility and should adjust risk management around support levels and funding rates. Over the longer term, sustained spot buying against weak shorts could maintain upward momentum, making XRP a bullish play when macro headlines favor risk appetite.