Liquidation data from the last 24 hours reveals some surprising imbalances between major cryptocurrencies:
Of the $5.95 million liquidated in XRP pairs, $4.77 million came from shorts, while only $1.18 million was absorbed from leveraged longs, according to CoinGlass.
This is a bit surprising when you look at the rest of the crypto market. Bitcoin and Ethereum led the way with $67.11 million and $35.53 million settled, respectively, but mostly mixed flows. However, the situation for XRP is different. Its liquidation map shows a clear story of bulls cornering short traders in a successful squeeze-like price action.
On Binance, XRP/USDT bounced 3.33% from a low of $2.57 to a high of $2.64, providing a clear explanation why the derivatives data came in the form of such an aggressive crash.
The crowd is punished, again
The way the market has been moving lately shows that the bears have been trying to push the token down, which is understandable considering the overall sentiment, but they have been pushed out at higher price points, making the bullish moves on the chart larger.
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One can see this as textbook behavior in the cryptocurrency market, where a crowded and overleveraged trade is punished in the most brutal and unexpected way.
Large short imbalances in XRP liquidations are rare and often coincide with a shift in trading psychology. The market recorded liquidations worth $216.75 million, reflecting concentrated pressure on short sellers. This setup may extend to a fresh bullish rally if spot buyers continue to absorb the selling pressure.