XRP dropped 8.18% in 24 hours as a broader crypto selloff forced traders holding leveraged long positions to close out, producing a 1522% imbalance between long and short liquidations. The token had surged to $1.65 on September 23 before reversing sharply to a low of $1.45. Analytics platform Santiment says XRP's long-term MVRV points to a deep discount that has historically preceded recovery.
XRP saw a 1522% liquidation imbalance after a sudden market selloff forced traders betting on a price increase to close out leveraged positions. At the time of writing, XRP was down 8.18% in the last 24 hours after a sharp surge to $1.65 on September 23 quickly reversed, catching bulls off guard.
The drop continued early Thursday, with the price reaching a low of $1.45 amid an ongoing selloff in the broader crypto market. The selloff liquidated $610 million in positions over the past day. Over the same period, XRP saw $31.48 million in liquidations, with longs accounting for $29.54 million against $1.94 million in shorts.
XRP had begun rising from a low of $1.24 on September 16, marking six out of eight days in the green afterward. The rise coincided with XRP's first golden cross on the daily chart this year. Bulls pushed the token to $1.65 on Wednesday but could not sustain it above that level before the price retreated.
Crypto market faces selloff
After a stunning rally the past week, the crypto market saw profit-taking, with most digital assets recording significant losses. The drop coincided with Treasury yields trading at multi-decade highs as investor bets on another rate hike from the Federal Reserve mounted.
Recent economic data drove expectations of more rate hikes, with traders pricing in a more-than-75% chance that the Federal Open Market Committee will increase rates again at its October meeting. Speaking in London on Thursday, New York Federal Reserve President John Williams said it would be "reasonable" to expect another Fed interest rate hike by the end of the year.
XRP's deep negative MVRV puts recovery in focus
According to onchain analytics platform Santiment, XRP is flashing a deep long-term MVRV discount, with its 365-day MVRV at around -11.75%. Lower MVRV usually means less downside risk, since fewer profitable holders remain to sell when most are already underwater.
Buying during that pain has historically offered better long-term setups. Despite the recent market rebound, average long-term XRP holders are still deep in the red, signaling more room to recover if demand continues to improve.
Source: U.Today
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