XRP Surpasses Bitcoin in Liquidation Volatility Shift

XRP has taken center stage in the crypto landscape as it recently overtook Bitcoin in one-hour liquidation volume, marking a remarkable shift in market dynamics. This significant development reveals increased leverage exposure for XRP, intensifying its volatility and sparking renewed market interest in the digital asset.

According to fresh data from CoinGlass, XRP recorded a one-hour liquidation total of approximately $1.19 million—far exceeding Bitcoin’s figure of around $823,340 for the same time period. This suggests that traders have become more aggressively positioned in XRP compared to Bitcoin, potentially setting the stage for notable price swings driven by leveraged trading behavior.

The bulk of the losses in XRP were borne by traders who went long, accounting for the entirety of the $1.19 million liquidation, while short traders faced relatively minor losses of just $33,000. Conversely, Bitcoin’s liquidations also leaned heavily toward long traders, who lost about $797,000, compared to just $25,350 in short positions. This parallel pattern of long liquidation dominance reveals a broader sentiment shift, where many market participants may have been anticipating an upward breakout that didn’t materialize.

The liquidation event highlights a broader struggle for XRP’s performance. Over the last 24 hours, XRP has recorded a price decline of approximately 3.86%, bringing its current trading value down to around $2.094. On a weekly scale, the token has slipped by 8.18%, indicating a stalled recovery and wavering investor confidence. More critically, the token has now dipped beneath the psychological support level of $2.10—a zone it had hovered near for some time, making this drop particularly noteworthy.

Despite the negative short-term trend, XRP’s fate remains closely tied to Bitcoin’s overall performance. This high correlation means that any bullish breakout by Bitcoin could likely uplift XRP as well. Market watchers are keeping a close eye on macroeconomic developments, especially upcoming decisions from the U.S. Federal Reserve, which could influence investor sentiment and lead to broad shifts across digital asset markets. Notably, policy announcements could act as a reset button for speculative trading behavior.

Another factor that could influence XRP’s trajectory is the growing anticipation surrounding a potential XRP ETF. Analysts and market prediction platforms have recently spotlighted rising sentiment for such a development, suggesting investor interest remains high even amid price dips. Ripple Labs’ ongoing regulatory saga and institutional movements have helped maintain visibility for XRP in recent weeks—elements that may continue fueling speculative interest.

This recent surge in liquidation activity cements XRP’s increasing relevance in the futures and derivatives trading space. With mounting volatility and speculative activity, XRP could experience sharper price movements going forward as both long and short traders adjust their strategies based on market data and broader economic indicators.

Related: Expert Advice: Sell XRP If You’re Confused

Crypto enthusiasts and investors should monitor such liquidation disparities, as they can offer predictive insights on market direction and sentiment. As XRP continues to navigate choppy waters, traders will be looking for cues from both Bitcoin’s performance and regulatory updates to determine the altcoin’s next moves.