XRP liquidations hit $6 million: A sign of ‘greed’ in the market?

A staggering $6 million in Ripple [XRP] contracts was wiped out of the market in the last 24 hours, AMBCrypto can confirm. These liquidations came to be as a result of the price crash on the 1st of April.

XRP began trading the new month around $0.61. But a collapse led by Bitcoin’s [BTC] drop below $67,000 spread to many other cryptocurrencies in the market.

Optimism is always a good choice

Out of the $6 million liquidation, $5.6 million was linked to longs. For context, longs are traders with contracts predicting a price increase.

Shorts, on the other hand, bet on prices to decrease and potentially profit from the forecast. According to data from Coinglass, short liquidation amounted to $324,230.

Source: Coinglass

However, there was an interesting twist to the situation on the spot market. This was because the trading volume of XRP increased by 58.69% within the same period traders lost the aforementioned amount.

Volume measures buying and selling of cryptocurrencies. Hence, the increase implied that transactions surged. However, the price action suggested that most of the volume ended up in sales rather than accumulation.
XRP price fall, while the volume increases, indicates strength for the downward momentum. If this continues, the price of the token might drop toward $0.55.

Different patterns, different views

Despite the high liquidation value, XRP’s Funding Rate remained positive. If funding is positive, it means that an asset’s perp price is trading at a premium.
On the other hand, a negative reading suggests that the cryptocurrency’s perp price was at a discount compared to the spot price.
According to AMBCrypto’s analysis, the Funding Rate was 0.030. However, the predicted rate was placed lower at 0.029.

Source: Coinalyze

Should the Funding Rate remain positive while XRP’s price moves lower, perp buyers might not get rewards. Hence, the bias might be bearish in favor of aggressive sellers.
With this condition, the token might continue to bask in the market bloodbath. However, CrediBULL Crypto, an analyst on X, had a different view.

According to the pseudonymous analyst, XRP could be set for a strong upside. CrediBULL Crypto concluded after examining the XRP chart against Bitcoin.

Source: X
From the chart he shared, XRP could bank on the $0.55 support and extend toward $0.74 in the short term.

For the token to have a chance at outperforming Bitcoin, altcoin dominance has to surpass the number one cryptocurrency. However, that has not happened as altcoins also faced severe downsides.