XRP Price Continues to Rise as Short Sellers Get Liquidated

The anomalous dynamics continue with the popular cryptocurrency XRP, especially when it comes to trading on the futures market.

The dynamics of XRP continue to surprise everyone, especially in futures trading. According to CoinGlass, XRP perpetual futures liquidations amounted to $2.57 million over the past four hours, making it the fourth largest volume in the entire crypto asset derivatives market.

Interestingly, only 17.9% of these liquidations were long positions, while the vast majority came from short position liquidations. This resulted in a significant imbalance in XRP during the period, with short liquidations exceeding long liquidations by 4.54 times, or 454%.

This disparity can be attributed to XRP's price action, which has seen the token experience virtually non-stop growth. It is also partly due to the persistence of bearish sellers, whose liquidations of short positions amplify the already steep rise in the token's price.

During these four hours, XRP's price printed a green candle of 6.34%, reaching a high of $1.15. As the data now shows, this was largely driven by the forced closing of bearish futures positions for over $2 million.

Evidently, going short on XRP is not the optimal trading strategy at the moment. After all, the token's price will continue to rise as long as sellers have funds, and it is likely that the price will keep increasing as long as they attempt to time a top in XRP.