XRP, one of the most resilient altcoins in the cryptocurrency market, has triggered a liquidation imbalance following its uptick in price. In the last 24 hours, XRP has recorded a total liquidation of $4.08 million as the coin broke a key resistance level.
Long traders bear brunt of XRP liquidations
According to CoinGlass data, long position traders suffered more losses, as $2.60 million was wiped out from investors betting long. This set up a liquidation imbalance of 69% in the XRP futures market.
Traders shorting the asset registered a loss of $1.49 million after XRP price registered an uptick alongside the broader market.
The liquidation imbalance that stunned long traders followed a sharp pullback after XRP climbed above $2.22 in earlier trading activity. The movement caught most investors by surprise, leading to the losses.
The sheer volume of long liquidations suggests market participants are bullish on XRP. It indicates that the XRP market is anticipating further rallies for the asset following its freedom from any legal ties with the U.S. SEC.
XRP is also on the brink of a breakout if the asset completes the golden cross it is attempting to form.
As of this writing, XRP was changing hands at $2.20, representing a 2.08% increase in the last 24 hours. However, trading volume has declined by 17.54% to $3.23 billion.
Price consolidates amid weak buyer support
This dip might have been triggered by the warning of a possible pullback, due to weak buyer support in the ecosystem.
Technical indicators show that XRP needs to sustain the current momentum, or it risks slipping to $2 or less in a worst-case scenario. Such a development would prove severe for the coin, as the $2.50 level emerges as a critical zone to watch.
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Considering XRP’s resilience this year, it will likely receive support from market bulls.
Meanwhile, XRP is within the reach of 20 million users in Japan following its availability on Mercoin, a crypto trading platform. This increased adoption could also support the price outlook.
