The crypto market has continued downward, with the combined capitalization down by 2.3% to $3.25 trillion. XRP has recorded an intense liquidation over the past 24 hours by joining the bearish bandwagon. Per CoinGlass data, XRP has recorded a total liquidation of $14,815,180, thumping many altcoins amid the asset’s over-leveraging.
XRP liquidation imbalance at play
According to the CoinGlass data, long position traders suffered the most losses, with a total exposure valued at $14,120,000. The short position traders’ exposure was $695,180. This total represents a 181% liquidation imbalance, suggesting a difference in market expectations.
However, this liquidation does not tell the whole story of how bearish XRP is. The open interest has also nosedived, deviating from its positive trend earlier in the month. This metric is down by 6.65% in 24 hours, with only 1.86 million XRP committed to futures trades.
XRP traders had higher expectations for the digital currency, considering all that has happened in its ecosystem over the past few months. The Ripple and U.S. SEC lawsuits have ended, setting the top altcoin for adoption by institutional firms.
The trend has already shown intense bets on XRP, and with the price moving against general expectations, the liquidation has intensified.
What’s next for XRP price?
At the time of writing, market data pegs the price of XRP at $2.146, down by 2.2%. From a high of $2.2, the coin almost lost the $2 support zone as bearish actions intensified.
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Despite being on the verge of entering the $1 zone, there has been a targeted rebound as bulls staged a comeback. XRP has lost all its gains on several time frames, making this the right time to stack the digital currency.
With the coin almost in the oversold level, there is an expectation that XRP could stage a rebound in the long term. The immediate target for the coin is pegged at $2.2, from which it can return to the monthly high of $2.645.
