XRP Price Surges ‘14,134%’ in Freak Liquidation Event – What Happened?

Price Prediction Ripple XRP

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Simon Chandler

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Simon Chandler

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Simon Chandler is a Brighton-based writer and journalist with over ten years of experience writing about crypto, technology, politics and culture. He has written for Cryptonews.com since late 2017,...

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October 24, 2024 08:10 EDT

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The XRP price has barely moved in the past 24 hours, with its 0.2% climb to $0.5269 coming after long liquidations exceeded short liquidations by over 14,000% yesterday.

XRP remains down by 5% in a week and by 10% in a month, with the alt also suffering a 4% loss in the past year.

Such weak performance helps account for why long liquidations dominated short liquidations yesterday, with October 23 seeing a 6,742% difference between the two across its 24 hours.

Yet with XRP remaining in an attractively oversold position, it’s likely that its price will rebound soon.

XRP Price Surges ‘14,134%’ in Freak Liquidation Event – What Happened?

Just to reiterate, it wasn’t the XRP price that surged by 14,000% yesterday.

Rather, its long liquidations were 14,134% higher than short liquidations at one point, with $1.07 million in longs folding, in contrast with only $7,570 in shorts.

This is according to data from CoinGlass, which today reports that, so far, XRP has witnessed $140,000 in long liquidations, in relation to $26,000 for shorts.

This means that long liquidations are currently 424% higher than the corresponding figure for shorts, with this declining percentage suggesting that the rate of liquidation may be slowing down.

Looking at XRP’s chart today, its indicators would certainly agree that the market has been overselling it for a little too long recently.

Its relative strength index (purple), for example, has been below 50 for most of this is week, and is still struggling to cross 50 today.

Likewise, its 30-period moving average (orange) has been below its 200-period average (blue) for several days now, which again indicates that an upswing should be coming.

XRP’s volume remains stable at around $1.3 billion, although this is very modest in relation to the volumes for tokens such as Bitcoin, Ethereum and Solana, at $37.7 billion, $19.7 billion and $5.5 billion, respectively.

Indeed, this touches on the nub of why XRP has been struggling, with major investors remaining mostly indifferent to the alt.

However, XRP’s long-term and fundamental position remains largely sound, with Ripple in a good position to overcome the SEC’s latest appeal attempt.

And given the firm’s recent expansion, including the launch of a stablecoin, the XRP price has every chance of ending the year strongly.

It could hit $0.65 by the end of November (in the event of a Trump victory), and $0.75 by the New Year.

Bullish New Meme Tokens with Strong Fundamentals

If XRP is a little too slow-and-steady for some traders, they may do better to invest in newer tokens with more early upside potential.

2024 has been a big year for various meme coins (e.g. Bonk, Pepe, Popcat), while it has also been profitable for numerous presale tokens.

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This should result in STARS experiencing substantial demand, with the coin’s official X account already reaching over 17,000 followers.

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Given Crypto All-Stars early popularity, it could easily go on to surge when it lists for the first time.

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