More than $40 million worth of XRP positions were liquidated within a 12-hour period, with over 96% coming from long trades. This was not a routine pullback but a sharp, leverage-driven move that forced bullish traders out of the market as key support levels broke.
The event was part of a broader liquidation wave across crypto, totaling nearly $874 million, highlighting how vulnerable heavily leveraged markets become during sudden price swings. Such moves often result in rapid wealth transfer from retail traders to larger players and exchanges, who benefit from forced liquidations and discounted asset prices.
The episode underscores a critical reality: when leverage dominates and liquidity thins, price action is less about sentiment and more about triggering liquidation zones. It raises ongoing concerns about whether market structure favors long-term participants or primarily serves as a mechanism to flush out overexposed positions.
