The leveraged market of XRP has experienced a series of intense washouts this week. According to data from CoinGlass, in just five days, derivatives traders who bet on the token's rise have suffered losses of over 30 million US dollars.
Reports indicate that after a brief period of optimism on November 4th, prices suddenly reversed, catching buyers off guard and triggering a series of liquidations throughout the crypto market.
By Friday, the scale of clearing had risen to an extreme level, reaching 2.74 times the weekly average. Exchange data shows that the loss structure was almost completely unbalanced: out of a total loss of $16.75 million for the day, long positions accounted for 95.54%, corresponding to $16.01 million; short positions suffered only a loss of $746,000.
Reports indicate that, as the most liquid platform, Binance suffered the greatest impact, with $8.06 million in leveraged positions related to XRP within the exchange being liquidated.
The text states that this is a typical case of "long squeeze." Traders opened positions with high leverage in anticipation of a continuing upward trend, only to get trapped in a downward trend. Subsequently, the positions that were forced to be closed impacted each other in a chain reaction. More than 3,600 traders around the world lost all their margins completely.
Where is the bottom?
In the spot market, XRP has fallen by 6.41% over the past few days, with the price being pressured at $1.1799 by the end of the week. Reports indicate that the strength of the sellers can be seen from the XRP / USD chart on TradingView: as the weekly candlestick was about to close, it left a long upper shadow, which means that every attempt by the bulls to take control of the situation again and buy on dips above $1.22 was suppressed.
For the XRP buyer, the technical aspects seem concerning:
- The price has fallen below the key moving averages, namely the 50-day EMA and the 100-day EMA. The latter has now turned into a strong resistance level around $1.271.
- Relative Strength Index (RSI) at RSI reads 33.21, and the earlier 'bearish' divergence that appeared on the chart has fully materialized, with a clear downward trend.
According to CoinGlass, the next critical trigger point for the market is at $1.1588, which is the nearest "headache zone" for bulls. The current price is only 1.79% away from this level.
Reports indicate that the probability calculated by the algorithm model shows a 50% chance of the chart testing this level within the next 24 hours. If the bulls also lose this price level, a series of liquidations will force the closing of positions worth approximately $928,900, accelerating the downward trend. According to the current XRP price, there is no support above the current price for buyers, while the selling pressure below is estimated to be less than $500,000.
