What to Know XRP’s decline to $1.38 triggered a 10,535% liquidation imbalance, wiping out leveraged long positions across major cryptocurrency derivatives markets globally. Crowded bullish po
XRP traders faced a liquidation imbalance when the token’s decline toward $1.38 erased leveraged long positions. According to CoinGlass, hourly long liquidations exceeded short liquidations by more than one hundred times during the market disruption.
The imbalance briefly reached 10,535%, revealing excessive bullish leverage across XRP derivatives markets during Labor Day trading. XRP had reached a daily high of $1.4150 before mounting sell orders pushed the token toward its local bottom.
As prices weakened, protective stop-loss orders activated across exchanges and forced traders with insufficient margin from their positions. However, XRP displayed an unusual market structure because the resulting losses remained overwhelmingly concentrated among bullish derivatives traders. The token later recovered from $1.38 to approximately $1.3892 as buyers absorbed part of the liquidation-driven selling pressure.
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XRP’s monthly Short Max Pain level stands at $1.4368, slightly above the daily high preceding the sudden decline. Traders expecting a decisive breakout above that barrier accumulated leveraged positions, creating an overcrowded and increasingly vulnerable bullish market.
Consequently, the reversal from $1.4150 activated cascading stop-loss orders, accelerating the decline toward the important $1.38 price region. XRP remained 3.94% below the short-side pain level, where approximately $9.20 million in bearish positions face potential liquidation.
Meanwhile, the Long Max Pain threshold sits at $0.9837, carrying approximately $24.29 million in potential leveraged liquidations. That threshold remains 28.83% below XRP’s rebound price, indicating the disruption was concentrated within a relatively narrow trading range.
Source: Coinglass
Conversely, MEXC and Bybit attracted speculative activity from traders seeking discounted positions during the forced liquidation cascade. MEXC recorded a 118.32% increase in daily trading volume as buyers entered the market and supported XRP’s initial recovery.
This demand helped XRP return toward $1.3892, preventing the liquidation event from developing into a substantially deeper price decline. Nevertheless, buyers must overcome resistance at $1.4010 before confirming that the short-term bearish market structure has ended. A sustained breakout could strengthen recovery momentum, while rejection might expose XRP to another test of support around $1.38.
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The post XRP Liquidation Imbalance Hits 10,535% as Leveraged Longs Collapse appeared first on 36Crypto.
