XRP derivative traders who held leveraged long positions lost more than $30 million over a five-day period, according to CoinGlass data. The losses followed a sudden price reversal that occurred after a brief period of market optimism on November 4, triggering a cascade of forced closures across the crypto market.
Extreme Liquidation Levels
Liquidation activity reached extreme levels by Friday, running 2.74 times above the weekly average. Exchange data reveals a lopsided distribution of losses, with long positions accounting for 95.54% of all daily losses. Longs recorded $16.01 million in losses out of a total daily loss figure of $16.75 million. Short positions accounted for the remaining $746,000 in daily losses.
Binance, the most liquid platform for XRP trading, reported the highest concentration of losses. The exchange saw $8.06 million in leveraged XRP positions wiped out during the event. More than 3,600 traders worldwide lost their entire deposits as a result of the liquidation cascade. The sequence of events is described as a textbook long squeeze, where overleveraged positions opened in anticipation of a continued rally were trapped in a falling trend, leading to forced closures that accelerated the decline.
Technical Resistance and Support
XRP dropped 6.41% on the spot market over the past several days, leaving the price pinned at $1.1799 by the weekend. The weekly candle on the XRP/USD chart closed with a long upper wick, indicating that bullish attempts to buy the dip above $1.22 were rejected. The price has settled below key moving averages, including the 50 EMA and 100 EMA. The 100 EMA has turned into hard resistance at $1.271.
The Relative Strength Indicator (RSI) stands at 33.21, with a bearish divergence that appeared earlier on the chart now fully playing out. The nearest long pain zone is identified at $1.1588, according to Coinglass. The current price is 1.79% away from this level. Algorithms estimate a 50% probability of the chart testing the $1.1588 level within the next 24 hours. If this support line is lost, a further liquidation cascade would force-close an additional 928,900 positions. Buyers currently have no support above the current XRP price, while sell pressure below is estimated at under half a million dollars.
Frequently Asked Questions
How much did XRP long positions lose in five days?
Derivative traders holding long positions on XRP lost more than $30 million over a five-day period, according to CoinGlass.
What is the current XRP price and nearest support level?
XRP is pinned at $1.1799, with the nearest long pain zone located at $1.1588, which is 1.79% away from the current price.
