Crypto : XRP collapses, $3.58 million lost...

The crypto market is often unpredictable. A new drop in XRP is a tangible illustration of this. Yesterday, XRP plunged to 0.5026. This situation led to massive liquidations in the futures markets, exposing the fragility of long positions in a context of widespread correction.

The fall of XRP and massive liquidations

On September 6, 2024, the XRP market experienced one of its largest waves of long position liquidations as the token price fell to $0.5026. Indeed, long-position traders on XRP suffered liquidations totaling $3.58 million. This steep drop comes amid increased volatility across the entire crypto market, with Bitcoin retreating and the American stock market in trouble. On Binance, the main affected platform, losses related to liquidations reached $1.82 million, or more than 50 % of the total XRP liquidations.

Besides Binance, other platforms also felt the impact of this correction. Bybit, the second most affected platform, recorded $863,510 in liquidations, while traders on OKX saw their long positions unwound for $550,090. This carnage on long positions shows how investors were caught off guard by this sudden drop. The acceleration of liquidations, especially on futures contracts, was triggered when XRP crossed the psychological threshold of $0.50.

A timid rebound in XRP

Between September 5 and 6, the total market capitalization fell by 6.42 %, dropping below the $1.9 trillion mark. This general decline increased the pressure on assets like XRP, which plunged despite attempts by some players to justify this drop with political rumors. According to some observers, the collapse in XRP’s price was amplified by reports of Chris LARSEN, co-founder of Ripple, supporting Kamala HARRIS for the 2024 US presidential election. However, this theory is quickly contradicted by market data, which indicate that the fall of XRP is part of a much broader correction movement.

Nevertheless, after hitting a low of $0.5026, XRP showed some signs of recovery. This morning, the token slightly rebounded, reaching $0.5281, a 1.34 % increase. Trading volume also surged, increasing by 108 % to $1.50 billion. One could conclude that this is a sign that traders are trying to take advantage of the dips to re-establish positions. But this rebound remains fragile. Caution is advised. Short-term prospects remain uncertain. It is not excluded that new corrections may occur if macroeconomic conditions and stock market trends continue to deteriorate.

While this morning shows a slight recovery, yesterday’s massive liquidations remind investors of the extreme volatility of these markets. The coming weeks will be crucial in determining whether this rebound is sustainable or just a temporary respite in a turbulent market.