In the last 24 hours, XRP has experienced significant volatility in the perpetual futures market. A massive 3,750% surge in liquidations has impacted traders, especially those betting on the token’s price rise. Here’s a breakdown of what went down.

The Long Position Liquidation

According to data from CoinGlass, XRP derivatives saw total liquidations exceeding $780,000. Shockingly, over 97% of these liquidations—roughly $760,800—came from traders who had long positions. These traders were expecting the price of XRP to rise but were caught off guard by a sudden downturn.

The excitement surrounding XRP began when its price saw a brief spike of 1.5%, reaching around $0.54 per token. This increase got traders hopeful for a continued price breakout. However, the market didn’t cooperate. Instead, XRP was met with strong selling pressure, resulting in a 1.6% drop within 30 minutes, and the situation worsened, as the price fell an additional 1.83%.

Bulls Take the Hit

Bulls—traders betting on a price increase—suffered the most during this volatile period. The long liquidations were 37.5 times higher than those for short positions (bets against price increases), further reflecting the imbalance.

With XRP now hovering around $0.50, traders are eyeing this level as a critical support line that’s been in play since June 2022. This zone has historically held up against further price declines, giving hope for some price stability moving forward.

However, given the recent volatility, whether XRP will rebound or face more pressure remains to be seen. As always, it’s crucial to stay informed and cautious when engaging in crypto markets.