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All eyes are currently on XRP as investors closely observe its price movement amid the growing buzz surrounding the recent launch of the first XRP ETF.
However, the XRP derivatives market has currently failed the expectations of bullish traders who predicted a surge immediately after the launch of the ETF, as data from Coinglass shows that a massive $9.09 million in long positions were wiped out in the last four hours.
XRP’s downtrend results in a 3.254% liquidation imbalance.
The data shows that about $10 million was liquidated on the XRP derivatives market in the last four hours, with long traders catering for most of it.
In particular, a massive $9.09 million from the total liquidation was removed in long positions against only $271,060 in shorts during the period.
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As such, the unilateral liquidation saw XRP record an insane 3.254% liquidation imbalance in favor of bearish traders. The 4-hour liquidation trend of XRP attracted the interest of investors, as it dashed the hopes of traders who bet on the rise in the price of the asset considering the hype around the launch of the XRP Canary ETF.
Rather than the expected bullish trajectory before the launch of the ETF, XRP instead saw a sharp price correction that led its price to retest the $2.3 level, leaving bullish traders on the wrong side of the move.
XRP dashes hopes after the launch of XRPC
In particular, the one-sided liquidation that occurred in favor of short traders signals how aggressively bullish sentiment was built by the buzz surrounding Canary XRP ETF launch Unfortunately, XRP’s price action failed to match expectations, putting the bulls into significant losses.
Speculators described XRP futures activity as a “buy the rumor, sell the news” type of event, where traders positioned themselves heavily for an upside breakout, but were caught off guard by immediate selling pressure after the XRP ETF debuted. Therefore, the liquidation event is not entirely surprising, as was previously predicted by market experts.
