2023-07-14 18:48:00
The year 2023 has proven to be a tumultuous time for XRP, the cryptocurrency issued by Ripple Labs. Following a landmark court ruling, short sellers suffered unprecedented losses. Indeed, the XRP market has seen a significant rise, propelling its market capitalization over $40 billionits highest level since April 2022.
Impact of Court Ruling on XRP: Rise, Pullback and Losses for Short Sellers
In the past 24 hours, XRP saw a notable price rally following a landmark court ruling, only to pull back during the early hours of trading in Asia on Friday. This development had a particularly large impact on short sellers of XRPwhich have recorded the largest losses of the year so far.
According to data from Coinalyze, XRP futures traders have accumulated total losses of $58 million following a US judge’s ruling that the sale of XRP tokens on exchanges did not constitute investment contracts.
Among these losses, short (or short) positions recorded losses of $33 million, while long positions accounted for the remainder. Traders on the Bybit cryptocurrency exchange platform suffered the most important liquidationsreaching $21 million, followed by OKX at $14 million and Binance at $14 million.
XRP liquidations reach their highest level of the year. Source : coinalyze
Massive liquidations, a turning point for XRP traders
Liquidation refers to the forced closing of a leveraged position by an exchange due to partial or total loss of the trader’s initial margin. This happens when the trader fails to meet the margin requirements for a leveraged position or does not have not enough funds to keep the trade open.
Massive liquidations can indicate the local high or low of a price changeallowing traders to position themselves accordingly.
Implications of the decision on the cryptocurrency market
Separately, the move caused prices for Solana (SOL), Cardano (ADA) and other altcoins to rise, with traders likely considering the partial victory of XRP as a favorable outcome for the cryptocurrency market, a market recently targeted by the United States Securities and Exchange Commission (SEC) for allegations that several issuers are offering their tokens as securities to US investors.
The recent court ruling regarding XRP has had a major impact on the cryptocurrency market. Short sellers suffered large losses, while XRP saw a remarkable rise of 53% in the last week. However, in the past 24 hours, XRP is showing an 11% decline, with a current price of $0.71.
XRP/USD. Source : TradingView
Source : Coindesk
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