XRP is trading around a key level that threatens to wipe out over $60 million in long positions. Currently priced at $2.21, according to Coinglass, the token linked to Ripple Labs has climbed 11.36% over the past 30 days. However, this upward streak may be laying the groundwork for setting the stage for sharp volatility. Still, this recent climb could set the stage for sharp price swings.
$60M at Risk if XRP Drops 4%
Fresh data from Coinglass shows that a 4% decline in XRP’s price—bringing it down from $2.21 to around $2.12—could trigger the liquidation of over $60 million in long positions. These bullish bets rely on XRP’s continued rise, but if the price drops too far, exchanges step in to forcibly close trades and limit losses, a process known as forced liquidation.
Liquidation Zone Could Trigger Market Instability
A potential 4% decline from XRP’s current price of $2.21 would place the asset near $2.12, a level identified by Coinglass as a major liquidation zone for long positions. Traders closely watch this area because a sharp drop to this point could automatically trigger the liquidation of over $60 million in bullish bets. When so many positions are closed in a short time, it can create a cascade effect, pushing prices down even further, though sometimes only briefly.
In crypto trading circles, this type of move is commonly known as a “stop hunt” or “liquidity sweep.” It refers to a sudden price dip designed—either intentionally by large players or naturally through market forces—to trigger stop-loss orders and forced liquidations. Prices often rebound after such events, but the short-term volatility can be significant and damaging for leveraged traders caught in the move.
Why Does the $2.063 Level Matter for XRP?
If XRP slips below the $2.063 mark, it won’t just be a routine dip—it could signal the beginning of one of the largest liquidation events the asset has experienced in recent months. This price level is important due to the dense concentration of leveraged long positions built above it. A breakdown here could trigger a cascade of forced liquidations, where exchanges automatically close positions to limit losses, adding intense selling pressure to the market.
Market Sentiment Could Shift Rapidly
A breach of this key level could rattle investor confidence and quickly change the market’s mood. Analysts and traders closely monitor these zones as they often serve as indicators for near-term volatility. With such a liquidation wave, sentiment may shift from optimism to caution, particularly among those holding leveraged long positions. In crypto, what starts as a small decline can rapidly spiral into broader price swings, catching unprepared traders off guard.
Final Thoughts
XRP’s current price of $2.21 is at a key point, where even a small 4% drop could lead to the liquidation of over $60 million in long positions. While the recent 30-day rise has created positive sentiment, it has also set up potential risks. Key levels like $2.12 and $2.063 are closely monitored, as a drop to these prices could trigger large sell-offs. Whether XRP continues to rise or faces a sudden drop, the next move is important and could impact the market in the short term.
