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XRP Rockets 454% in Liquidation Imbalance as Bears Fuel Price Rally

Author: Content Editor
The trading dynamics of the cryptocurrency XRP on the futures market continue to be anomalous, with a significant amount of liquidations occurring. Data from CoinGlass reveals that over the past four hours, the volume of liquidations of perpetual futures on XRP amounted to $2.57 million, making it the fourth largest volume in the crypto asset derivatives market. What is interesting is that the majority of these liquidations come from short positions rather than long positions, leading to an imbalance in XRP. Short liquidations exceeded long liquidations by 4.54 times or 454%. This discrepancy is attributed to the continuous growth of XRP's price and the stubbornness of bearish sellers, whose liquidations of short positions further drive the token's price up. During this four-hour period, XRP's price increased by 6.34%, reaching a high of $1.15, primarily due to the forced closing of bearish positions on futures worth more than $2 million. Consequently, shorting XRP is currently not a recommended trading strategy, as the price is expected to continue rising until bearish sellers run out of funds.

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