$176m Liquidated: XRP Crash Leaves Wake of Destruction Amongst Traders

6 months ago 5
XRP’s price is showing no signs of ending its tumultuous descent that was sparked by the SEC’s lawsuit against Ripple for conducting an unregistered securities offering This news sent panic throughout the market and caused the cryptocurrency’s price to crash, falling from over $0.50 before the news to lows of $0.20 yesterday Where it trends in the mid-term should depend largely on developments surrounding this lawsuit However, from a technical perspective, the cryptocurrency is currently plagued by immense weakness that may not let up anytime soon Data surrounding yesterday’s XRP trading activity shows that it saw a massive spike in volume, with the selloff leading to over $176 million in liquidations

XRP has been struggling to gain any buy-side support in the time following news regarding the SEC’s lawsuit against Ripple, which alleges that XRP is an unregistered security.

This lawsuit created a wave of panic and unease amongst XRP investors and came about shortly after the crypto’s parabolic rally to highs of $0.90.

Yesterday, during the peak of the cryptocurrency’s selloff, XRP’s price nuked to lows of $0.21 before it was able to find some buying pressure.

The subsequent rebound led it up to $0.30, but it was rejected here and has been sliding lower ever since.

This movement’s results have been devastating for buyers, with a total of $176 million in long positions being liquidated over a 24-hour time frame.

XRP Struggles to Gain Momentum as Rebound Falters

At the time of writing, XRP is trading up marginally at its current price of $0.26. This marks a notable decline from its recent highs of $0.90 set just a few weeks ago.

The selling pressure seen in the time since the SEC news has been unprecedented and even caused it to shatter the last serious support it had around $0.30.

Here’s the Aftermath of Yesterday’s Crash

According to one analytics firm, XRP’s 40% price decline yesterday came about in the midst of ultra-high trading volume and led to a total of $176 million worth of long positions to be liquidated.

This is the highest level of liquidations seen over the past 8 months.

“XRP yesterday, a summary: -40% price drop -OI nuked -High trading volume: $10 bln on futures and $3 bln on spot. On futs, it was the second highest trading volume -Mass liquidation: $176 mln longs got liquidated. The highest level of liquidations over the last 8 months…”

XRP

Image Courtesy of Coinalyze.

Unless there’s some massive turn of events that work in XRP’s favor, the SEC lawsuit will likely be a “black swan” that causes a continued descent.

Featured image from Unsplash. Pricing data from TradingView
Read Entire Article