$176 million were liquidated as Ripple’s XRP left a field of destruction behind when the price crashed thanks to the SEC Lawsuit as reported in the previous Ripple news.
XRP’s price is showing no signs of ending the drop that was sparked by the SEC lawsuit towards Ripple for allegedly conducting an unregistered securities offering. The news sent panic over the market and caused the crypto’s price to crash and fall to $0.20 a day ago. Where will it trend in the mid-term should depend on the developments around the lawsuit. However, looking at the price from a technical perspective the crypto is now plagued by a strong weakness that could not ease up anytime soon. The data around XRP’s activity shows that there was a massive spike in volume with the selloff eventually leading to a moment where $176 million were liquidated.
XRP has been struggling to gain more buy-side support in the time after the news of the SEC lawsuit against Ripple which alleged that XRP is unregistered security. The lawsuit created a new wave of panic and unease among the XRP investors which came about right after the crypto parabolic rally to highs of $0.90. yesterday, during the peak of the selloff, XRP’s price dropped to new lows of $0.21 before it was able to find stronger buying pressure.
The rebound led it up to $0.30 but got rejected and was sliding lower ever since. The movement resulted in devastation for the buyers with a total of $176 million in long positions being liquidated in a 24-hour time frame. At the time of writing, XRP was trading at a current price of $0.26 which marks a notable drop from its recent highs of $0.90 that was set a few weeks ago. The selling pressure that was seen since the time the SEC launched its lawsuit, caused a shattering effect that led the coin below $0.30.
According to one analytics company, XRP’s drop yesterday came about in the midst of the ultra-high trading volume which led to a total of $176 million worth of long positions to be liquidated. This is the highest level of liquidations that were seen in the past 8 months:
“XRP yesterday, a summary: -40% price drop -OI nuked -High trading volume: $10 bln on futures and $3 bln on spot. On futs, it was the second highest trading volume -Mass liquidation: $176 mln longs got liquidated. The highest level of liquidations over the last 8 months…”
Unless there’s a strong shift back that will work in XRP’s favor, the SEC lawsuit will be a black swan that causes more declines in the near-term.
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