The price of XRP has joined the bearish consolidation trend, but futures liquidation has shown that a potentially more troubling drawdown may be around the corner. Data from CoinGlass shows that XRP has outranked Bitcoin (BTC) in the hourly liquid trend. This shift shows more direct leverage exposure for XRP, a move that can stir more volatility for the coin.
XRP liquidation shift
Per the CoinGlass data, XRP liquidation was $1.19 million in one hour. Of this, long position traders suffered the biggest losses, worth $1.19 million, while short traders accounted for only $33,000.
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By comparison, Bitcoin had a smaller hourly liquidation of around $823,340. Just like for XRP, long traders accounted for over $797,000, and short traders recorded $25,350. The massive liquidation imbalance that shifted in favor of the long traders is evidence of high anticipation for a market breakout.
Over the past month, XRP has not done enough to impress the market, recording a flat growth trend. At press time, the coin was changing hands for $2.094, down by 3.86% in 24 hours.
With weekly losses now extended to 8.18%, XRP’s growth path has slipped below the $2.10 support zone. How the coin will stage a rebound now remains to be seen.
Relying on Bitcoin boost
It is worth noting that XRP still maintains a strong correlation with Bitcoin, and any major price move for the bigger coin can trigger a rebound for the former.
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Based on this reality, XRP’s growth may be stunted until BTC prints a breakout trend. A number of macroeconomic trends, including the U.S. Federal Reserve meeting, can come with policy changes that will change investors’ perception and help reset the market.
However, the coin may also rely on the growing hype around the XRP ETF and the shift in Ripple Labs, which has kept it in the spotlight in the past few weeks.
