- Long liquidations totaled $5.6 million, while shorts amounted to less than $500,000.
- The funding rate could be lower, suggesting a potential drop to $0.55.
An astonishing amount of $6 million in Ripple [XRP] The contract was wiped from the market in the past 24 hours, AMBCrypto confirmed. These liquidations took place as a result of the April 1st price crash.
XRP began trading around $0.61 during the new month.However, the Bitcoin-led crash [BTC] If it falls below $67,000, it will spread to many other cryptocurrencies on the market.
Optimism is always a good choice
Of $6 million liquidation, $5.6 million led to a long position. For context, a long is a trader with a contract that predicts price increases.
Shorters, on the other hand, are betting on the possibility that prices will fall and they can profit from their predictions. According to Coinglass data, short-term liquidations amounted to $324,230.
Source: Coin Glass
However, there was an interesting development in the spot market situation. This is because the trading volume of XRP increased by 58.69% during the same period and traders lost the aforementioned amount.
Volume measures the buying and selling of cryptocurrencies. Therefore, this increase means that transactions have increased rapidly. However, price trends suggest that most of the volume ended up in sales rather than accumulation.
A decline in XRP price while volume increases indicates strong downward momentum. If this situation continues, the token price could fall towards $0.55.
Different patterns, different perspectives
Despite the high liquidation value, XRP’s funding rate remained positive. Positive funding means the asset’s PERP price is trading at a premium.
On the other hand, a negative reading suggests that the PERP price of the cryptocurrency is discounted compared to the spot price.
According to AMBCrypto analysis, the funding rate was 0.030. However, his predicted rate was lower at 0.029.
Source: CoinAnalyze
If the funding rate remains positive even when the price of XRP falls, PERP buyers may not receive any rewards. Therefore, the bias could be bearish in favor of active sellers.
In this state, the token may continue to be exposed to market ravages. However, X analyst CrediBULL Crypto had a different opinion.
According to a pseudonymous analyst, XRP could be on a significant upward trend. CrediBULL Crypto has concluded after studying the XRP chart against Bitcoin.
Previously, AMBCrypto reported that the token could outperform Bitcoin. That hasn’t happened yet, but analysts said it’s close.
Source:X
Realistic or not, the market capitalization of XRP in BTC terms is as follows:
According to the chart he shared, XRP could rely on support at $0.55 and extend towards $0.74 in the short term.
For the token to outperform Bitcoin, altcoins must outperform the number one cryptocurrency. However, that did not happen as altcoins also face serious downsides.
