Traders Lock in Profits as XRP Fall
In the aftermath of an impressive price surge that propelled XRP and other altcoins to new heights, traders are now faced with the need to secure their gains and liquidate their positions.
Over the past 24 hours, XRP experienced a notable decline of 13%, which subsequently extended to a total fall of approximately 17%.
Prominent Chinese crypto journalist and blogger, Colin Wu, revealed this development in a recent tweet, citing data provided by CoinGlass.
XLM has fallen by 13.5% in the last 24 hours; XRP has fallen by 13% in the last 24 hours; ADA FTM BSV LTC MKR has also fallen sharply; the amount of liquidation in 24 hours reached 218 million US dollars, and 160 million US dollars was long liquidation. https://t.co/YQ6p9AZeYG
— Wu Blockchain (@WuBlockchain) July 15, 2023
Major Altcoins Experience Sharp Price Falls
As traders began to close their positions, a staggering $218 million worth of crypto assets were liquidated, resulting in significant price drops across several major altcoins.
Among the affected cryptocurrencies were ADA, LTC, XLM, MKR, FTM, and BSV.
Notably, a significant portion of the liquidated amount, approximately $160 million, constituted long positions in these coins.
XRP’s Price Surge and the Verdict on its Security Status
The price of XRP had previously skyrocketed by approximately 100% following a verdict delivered by Judge Analisa Torres.
The ruling stated that XRP should not be classified as a security, contrary to the position maintained by the U.S. Securities and Exchange Commission (SEC).
The court clarified that only XRP sold by Ripple directly to financial institutions would be deemed securities, while programmatic sales and other sales made by Ripple would not fall under this classification.
Ripple’s Ongoing Legal Assessment
In light of the court ruling, the community is now contemplating whether Ripple’s ODL (On-Demand Liquidity) sales and the release of XRP from escrow should be considered securities as well.
In response to this question, Ripple’s Chief Technology Officer, David Schwartz, took to Twitter, stating that the company’s legal team is actively investigating the matter.
The outcome of this assessment will likely have significant implications for Ripple and the broader crypto industry.
XRP Shows Signs of Recovery
Following the recent price decline, XRP has managed to recover nearly 6% of its value.
At present, the cryptocurrency is trading at $0.72193.
The market remains eagerly attentive to developments surrounding XRP’s security status and any potential impact on its price trajectory.
Short Sellers Face Massive Liquidations Amid Crypto Market Rally
In a significant turn of events, short sellers are facing substantial losses as the crypto markets experience a powerful rally following a favorable ruling for XRP.
Over the course of just 24 hours, a staggering $218 million worth of digital assets have been liquidated from major crypto exchanges, marking a significant blow to short sellers.
XRP Soars Following Favorable Ruling
The recent surge in liquidations can be attributed to a landmark ruling that clarified Ripple Labs’ automated open-market sales of XRP as not being securities.
This ruling sent shockwaves through the market, propelling XRP to skyrocket from $0.47 to a peak of $0.82, representing an impressive 74% increase.
Although the digital asset has since retraced, it is currently trading at $0.78.
Significant Liquidations Across Leading Exchanges
Market intelligence firm Coinglass has revealed that the largest crypto exchange by volume, Binance, witnessed liquidations of $77.7 million worth of short contracts during this period.
Other prominent exchanges, such as OKX and Bybit, also experienced substantial short liquidations, amounting to $59.8 million and $30.6 million, respectively.
Double-Digit Price Increases Fuel Liquidations
The rally in the crypto market prompted by the XRP ruling resulted in several digital assets experiencing impressive double-digit price increases.
Solana (SOL), a smart contract platform, witnessed an 18% surge, while Arbitrum (ARB) and Optimism (OP), two layer-2 scaling solutions, saw respective increases of 11% and 13%.
Noteworthy gains were also observed in Cardano (ADA) and Avalanche (AVAX), both Ethereum (ETH) rivals, with rises of 16.5% and 15% respectively.
Stellar (XLM), a payments platform, saw a remarkable 31% increase, while ApeCoin (APE), the digital asset associated with the popular Bored Ape Yacht Club non-fungible token (NFT) collection, rose by 18%.
Bitcoin, XRP, Solana, and Ethereum Lead Liquidation Wave
According to Coinglass, the four crypto assets that witnessed the highest number of short position liquidations in the past day were Bitcoin (BTC), XRP, Solana, and Ethereum.
The market volatility triggered by the XRP ruling and subsequent rally has resulted in significant losses for short sellers across these leading cryptocurrencies.
Stay tuned for further updates on the evolving market dynamics and the implications of the XRP ruling on the crypto landscape.
