XRP Experiences a Sudden Liquidation Surge, Far Exceeding Bitcoin with a Large Margin

XRP has witnessed significant liquidation imbalance in the past hour, with long positions severely affected. Out of a total of $792,320 in XRP liquidation, $779,070 came from long positions, while short positions accounted for only $13,250. The strong deviation towards liquidation has caused the buy/sell ratio of XRP to reach 5,840 percent. According to CoinGlass, XRP has surpassed Bitcoin in the total number of liquidation orders in the hour, making it the largest asset most affected. Bitcoin, which often leads the market in liquidation figures, has recorded a total of 574,690 dollars in liquidation. Unlike XRP, Bitcoin's figures do not show significant bias between buy and sell orders. This contrast highlights the exposure of XRP traders on the buy side.

The broader cryptocurrency market also witnessed increased liquidation activity, totaling $15.34 million in just one hour. Of that, $13.32 million came from long positions, while only $2.02 million came from short positions, confirming a broader buying risk pattern. However, the figures for XRP stand out regarding volume and extreme imbalance. Tight Leverage and Herd Positioning Drive XRP's Sudden Liquidation Surge Despite the increase in liquidation, the price of XRP remained relatively stable, trading in the range of $2.58 to $2.61 throughout the event. The lack of significant price fluctuations indicates that the liquidation is due to tight leverage and poor risk management rather than a sudden market sell-off. Even small fluctuations can trigger widespread margin calls as traders rush into high-leverage long positions. In the case of XRP, this has created a cascading effect, wiping out long positions without causing the price to collapse. This wave of liquidation allows us to emphasize the fragility of the altcoin market, where excessive leverage and one-sided positioning remain prevalent. XRP's performance over the hour highlights the vulnerability of leveraged trades, especially when circumstances do not favor hostile bullish bets. XRP's surprising lead in total liquidation indicates deeper structural difficulties in leveraged trading. The extremely long-term bias and emerging issues suggest that altcoin traders are likely to reevaluate their approach, especially during times of low volatility.