Earlier on Saturday, XRP fell due to continuous market selling, and leveraged long traders faced forced liquidations, resulting in a clearing imbalance of 2008%.
A clearing imbalance of such scale indicates that traders who bet on the price of XRP to rise were liquidated at a much faster rate than those who bet on it to fall further.
In this context, CoinGlass data shows that the total settlement amount for XRP is 7.92 million US dollars, of which long positions amount to 7.55 million US dollars and short positions amount to 375,910 US dollars. This means that the settlement imbalance reaches 2008%.
As of press time, XRP has fallen by 3.09% in the past 24 hours to trade at $1.27, continuing its downward trend for the third consecutive trading day since the significant decline on Thursday. This ongoing decline caught traders who were expecting a price rebound off guard, leading to forced liquidations.
The global market is under renewed pressure, dragging down cryptocurrencies and erasing the gains seen earlier this week. In the past 24 hours, a total of $667.71 million was liquidated in the crypto market, with long positions being the most affected, amounting to $528.30 million.
Contents that need attention
A recent report from Santiment indicates that the number of addresses for XRP Ledger continues to grow, with the number of non-empty wallets reaching a record high of 8.24 million. This continues the upward trend observed during the price fluctuations of the past few months.
Holder growth continues, with the network seeing a new addition of 4,772 wallets in a single day, representing the fifth largest increase since March. New participation is accelerating once again, and if prices continue to rise, this will strengthen the bullish arguments and confirm user growth.
$1.40 is the level that needs to be watched first. If the price can consistently remain above this level while online growth continues to be near or above 4,000 wallets per day, then a quick return to $1.50 will be more likely. If XRP falls below $1.30 and the number of new wallet creations drops to less than about 3,000, then the persuasiveness of this adoption signal will weaken in the short term.
The MVRV of XRP is approximately 0.92, which indicates that traders are generally in a loss-making state. This represents a more favorable and lower-risk opportunity compared to when holding a large amount of floating profits.
On the positive side, Arf is introducing settlement liquidity for XRP Ledger. This platform, which is regulated by Switzerland, is collaborating with Ripple, and the settlement liquidity supported by RLUSD will be provided to licensed cross-border payment companies on XRP Ledger ( XRPL ).
