XRP Price Turning Point: Liquidations Draw Attention

XRP, which has become a favorite among investors, is attracting attention with its recent price movements. Especially the liquidation waves experienced on the Binance exchange indicate that the price may undergo sharp changes in the coming days. In the cryptocurrency market, XRP derivatives transactions provided an important picture in the early days of the year, trapping highly leveraged investors in both directions.

According to data shared by CryptoQuant analyst Amr Taha, short positions in XRP were liquidated first, followed by long positions in succession. The liquidation data for XRP between December 31 and January 7 clearly reveals the volatility on the Binance platform. During this period, there was a significant liquidity cleanup on both sides of the market.

On January 5, over $4.4 million in short position liquidations occurred in the XRP market. Of this liquidation, approximately $3.09 million originated from Binance, with a large portion of the short positions identified as being opened on this platform. On January 6, while XRP price experienced a slight pullback from the $2.40 level, long positions were also targeted. On this date, approximately $4 million in liquidation occurred, with $1 million of that also happening on Binance.

Shortly after, an additional liquidation wave of $1.5 million was observed. The 15-minute and 1-hour liquidation sensitivity data from Binance show that all short positions were cleaned first, followed by price movements against long positions. This situation suggests that the market could create a basis for sharp price reversals by punishing highly leveraged investors.

There are critical points that XRP investors need to pay attention to. The direction the price will take after the liquidation processes is a major point of curiosity. In the coming days, the levels investors should monitor will be shaped according to the overall liquidity flow and position dynamics of the market.