XRP traders are making bullish moves by opening leverage long positions amidst the liquidation of shorts amounting to over $453,000. This comes at a time when Ripple faces a setback in the ongoing legal battle with the SEC, and a recent security breach affecting Ripple co-founder Chris Larsen.
XRP Holds Strong Amidst Challenges
Taking a closer look at what’s happening in the market, traders initially thought XRP would keep going down after it went below $0.51. Contrary to expectations, XRP bounced back, going above $0.51 again, and this led to many traders closing their short positions.
In the last 24 hours, XRP traders have reported liquidations exceeding $517,600, as per data from the crypto market data provider Coinalyze.
Interestingly, a significant portion of these liquidations, amounting to $453,900 or 87.69% of the total, involved short positions. The majority of these liquidations occurred on Binance, showing how much the market reacted to XRP’s unexpected comeback.
Whale Taking Long Positions
In the aftermath of the surge in short liquidations, whale sentiment undergoes a notable shift, with a focus on long positions. Market interest experiences a 2.31% increase in futures and perpetual open interest (OI), reaching the current value of $458 million.
The long/short ratio, a crucial indicator of market sentiment, witnesses a significant spike, reaching 2.80. Over the past 24 hours, long positions constituted 73.67% of total leveraged positions across all exchanges.
This shift is consistent across various timeframes, signaling a growing confidence among market participants in XRP’s future trajectory.
Looking Forward: What’s Next for XRP?
XRP is holding strong, currently trading at $0.5130. It gained 2.23% in the last 24 hours and 2.19% in the past seven days. This is good news after a bumpy period where XRP struggled to keep its value above $0.51.
As traders make smart moves in response to changes, the rise in long positions and increased market interest could be a turning point for XRP. The cryptocurrency community is proving it can handle challenges, and adapt to what’s happening in the market.