XRP, the digital currency associated with Ripple, has witnessed substantial price fluctuations over the past 24 hours following a significant court ruling. Consequently, short traders of XRP faced the most significant losses of the year.
Coinglass data reveals that XRP-tracked futures traders suffered losses amounting to approximately $58 million after U.S. Judge Torres concluded that the sale of XRP tokens on exchanges should not be considered investment contracts. As an investor, it’s important to stay updated with these developments in the market. We’ve broken down everything you need to know- Read on!
The Bears are Suffering
Out of the total losses, around $33 million were incurred from short positions, which essentially involve bets against price increases. The remaining losses were linked to long positions, where traders anticipate price appreciation. Among the affected traders, those on the Bybit cryptocurrency exchange experienced the highest number of liquidations, totaling $21 million. OKX and Binance followed closely behind, with liquidations of $14 million each.
Read More: A Big Win for the Crypto Space & Ripple Against the SEC; Bull Market is Here!
Liquidation refers to the forced closure of a trader’s leveraged position by an exchange due to either partial or complete loss of the initial margin. This action occurs when a trader fails to meet the margin requirements for a leveraged position or lacks sufficient funds to sustain the trade.
Notably, significant liquidations can sometimes indicate the occurrence of a local high or low in the price movement. This information allows traders to make appropriate adjustments to their positions, aligning them with market trends.
How Will This Landmark Ruling Impact the Markets?
The implications of the court ruling extend beyond XRP, affecting other altcoins like Solana (SOL) and Cardano (ADA), which experienced price surges. Traders likely interpreted XRP’s partial victory as a positive outcome for the overall cryptocurrency market, particularly in light of the U.S. Securities and Exchange Commission’s ongoing investigations into allegations of token issuers offering securities to U.S. investors in recent months.
Related: Ripple News Update : CEO Brad Garlinghouse Teases Exciting Prospects Post XRP Victory
Ripple’s favorable outcome in court also had a positive influence on the entire cryptocurrency market. CoinMarketCap data reveals that the global crypto market cap spiked by 6.32% in the last 24 hours, reflecting the impact of Ripple’s victory.
