XRP liquidation bloodbath! $7.34 million evaporated in 4 hours, 935% imbalance created the week's worst.

XRP traders have just experienced a brutal XRP liquidation storm. According to CoinGlass data, a total of 8.13 million USD positions were liquidated in the past 4 hours, with long positions losing as much as 7.34 million USD, while short positions only lost 785,000 USD, and the liquidation imbalance ratio soared to 935%.

XRP Liquidation Storm: The Chain Collapse Behind 935% Imbalance

(Source: Coinglass)

The XRP liquidation disaster did not explode in an instant, but rather was a gradually escalating chain reaction. When the price began to slide below $2.60, the first batch of high-leverage long positions reached the liquidation line and were forced to sell their positions. This selling pressure further pushed down the price, triggering the next batch of long positions with lower liquidation thresholds, forming a "liquidation spiral."

According to CoinGlass monitoring, in just 4 hours:

Total liquidation amount: 8.13 million USD

Long Position Liquidation: 7.34 million USD (accounting for 90.3%)

Short positions liquidation: 785,000 USD (accounting for 9.7%)

Liquidation imbalance ratio: 935%

This 935% imbalance ratio means that for every 1 dollar of short positions liquidated, 9.35 dollars of long positions are wiped out. This extreme asymmetry exposes the excessive leverage risk accumulated in the XRP market during the previous upward process.

Price plummet trajectory: from $2.60 to $2.41

XRP price trend clearly shows liquidation cascade effect:

$2.60: Relative stability zone before liquidation starts

2.55 USD: The first wave of liquidation triggered, long positions began to exit.

$2.50: Key support lost, panic sentiment spreads

2.41 USD: liquidation peak, short-term low point

2.44 USD: Current stable position (at the time of writing)

In stark contrast to the silence of short positions, the shorts have faced almost no liquidation pressure. This indicates a strong control by sellers, who can dominate the market direction without high leverage. When long positions are forced to close positions, the shorts harvest in a timely manner, further driving down prices.

XRP liquidation positioning in the overall market

Putting XRP liquidation data in a broader market context highlights its vulnerabilities even more. During the same 4-hour period, the total liquidation amount in the overall cryptocurrency market reached 241.6 million USD, with the liquidation distribution of major cryptocurrencies as follows:

Although the absolute amount of XRP liquidation accounts for only 3.4% of the total market, its 935% long-short imbalance ratio far exceeds that of other mainstream cryptocurrencies. The liquidation of Ethereum and Bitcoin shows a relatively balanced long-short distribution, indicating that the markets of these two leading cryptocurrencies are more mature and the leverage distribution is more reasonable.

In comparison, the XRP market has clearly accumulated too much one-sided long positions leverage during the rebound process. When the price reverses, the lack of short positions buffer leads to long positions becoming the target of concentrated liquidation.

Why is the XRP leverage so aggressive?

The extreme XRP liquidation imbalance may stem from several factors:

Overexpectation of Legal Benefits: The progress of the Ripple vs. SEC lawsuit, possible ETF approvals, and other news are attracting speculative funds to flow in.

Retail FOMO Sentiment: The XRP community is highly active, making it easy to form a high-leverage chase driven by the "fear of missing out".

Relative Lack of Liquidity: Compared to BTC and ETH, the market depth of XRP is shallower, making leveraged trading more likely to trigger severe fluctuations.

Technical Breakdown: Key support has been lost, triggering stop-loss and liquidation orders simultaneously.

This positioning makes XRP long positions more vulnerable during the second round of declines. The current leverage ratio still tilts, and any further drop could trigger a new round of cascading liquidation.

Technical Warning: $2.50 is the Crucial Line

From a technical analysis perspective, $2.50 has shifted from a support level to a resistance level, becoming a key battleground that long positions must reclaim.

Current Technology Landscape:

Current Price: 2.44 USD

Key resistance: $2.50 (previous support turned resistance)

Secondary Resistance: $2.60 (liquidation starting point)

Key support: $2.40 (psychological barrier)

Secondary support: $2.30 (deep correction area)

If XRP cannot regain the $2.50 level, the chart will further open up downside potential below $2.40. The leverage structure will continue to lean towards short positions until the lost ground is successfully reclaimed, and any rebound may encounter selling pressure similar to the nearly ten-to-one wipeout of long positions this time.

Market observers point out that traders are currently closely watching the Bitcoin Dominance indicator to look for signs of capital flowing back into altcoins. However, as it stands, XRP's positioning remains overly heavy, and there is no margin for error in the leveraged imbalance.

Risk Warning for XRP Traders

After experiencing this XRP liquidation storm, investors should pay attention to:

Avoid chasing high leverage: When prices rise rapidly, it is often the most crowded and risky moment for leverage.

Set reasonable stop loss: The liquidation price should not be too close to the entry price, leaving enough buffer space.

Funding Rate Monitoring: When the perpetual contract funding rate is too high, it indicates that long positions are overly crowded.

On-chain Transfer Observation: A large influx of XRP into exchanges may indicate selling pressure.

Waiting for Leverage Liquidation: The current long positions leverage has not been fully cleared, and the sustainability of the rebound is in doubt.

If you hold high-leverage XRP long positions, the priority is to assess the liquidation risk. Even if you are optimistic about the long-term trend, short-term volatility may force you to exit early before the leverage imbalance is corrected.

Market Outlook: Rebound or Double Bottom?

XRP is currently at a critical crossroads. On one hand, the short-term overselling may attract bottom-fishing capital; on the other hand, the imbalance in the leverage structure has not yet been repaired, and the technical breakdown increases the downside risk.

Rebound Scenario (Conditions to be Met):

Bitcoin drives the overall market recovery.

The resistance at 2.50 USD has been effectively broken.

The funding rate turns neutral or negative (short positions start to leverage)

On-chain data shows that selling pressure has eased.

Second Bottom Testing Scenario (Warning Signal):

2.40 USD support has once again been breached.

The dominance of Bitcoin continues to rise.

The balance of XRP on the exchange continues to increase.

A new round of liquidation triggers a chain reaction.