XRP News Today: XRP's 11.36% Gain Faces 4% Drop Risk, $64.24M Liquidation Threat

XRP, the cryptocurrency associated with Ripple Labs, is currently valued at $2.12. Over the past 30 days, the token has experienced an 11.36% increase, indicating a strong upward trend. However, this momentum could potentially lead to significant volatility.

Recent data from Coinglass indicates that a 4% drop in XRP's price, bringing it to $2.063, could result in the liquidation of over $60 million in long positions. In leveraged trading, long positions are bets that the price of a cryptocurrency will continue to rise. If the price moves in the opposite direction, trading platforms automatically liquidate these positions to prevent further losses, a process known as forced liquidation.

The liquidation map for XRP shows a high concentration of long positions between $1.90 and $2.10, making this a critical zone for traders. If XRP's price falls below $2.063, it could trigger a cascade of liquidations totaling nearly $64.24 million, marking one of the most substantial XRP liquidation events in recent months. This 4% drop represents a critical price zone, as large liquidations at this level could further push down prices, even if only temporarily.

Traders and analysts closely monitor these levels. In the crypto community, such events are often referred to as "stop hunts" or "liquidity sweeps," where the price drops to a level that triggers liquidations before rallying again. Should XRP breach the $2.063 price point, it would result in one of the largest XRP liquidation events in recent months.

Coinglass data also reveals the platforms most affected by potential liquidations. Bybit would be the most impacted, with over $7 million in long positions expected to be liquidated if XRP's price drops to $2.063. Binance and OKX follow with $3.39 million and $1.30 million in expected liquidations, respectively. Analysts advise traders holding long positions to reduce their leverage or set up stop-losses to protect against potential price drops.