Most net-long XRP positions sit above the current price, leaving traders underwater

This can break key support levels and trigger more liquidations in a feedback

XRP traders who bet on higher prices are mostly losing money as the token slides toward $1.30. Data from Hyperliquid shows that up to 96.1% of long positions were opened above the current spot price. This concentration of longs above market level means many traders are currently in unrealized losses. The situation creates vulnerability to further downside if selling pressure increases. The high proportion of longs entered at higher prices increases the risk of cascading liquidations. As XRP declines, leveraged long positions may be automatically closed by exchanges to cover losses. This forced selling can amplify downward moves and heighten volatility. Market makers and algorithms may exacerbate swings during thin liquidity conditions. Traders with tight stop-losses or high leverage face elevated risk of being wiped out. How Liquidations Could Trigger a Downward Spiral When leveraged long positions are liquidated, the resulting sell orders add to existing downward pressure.

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This can break key support levels and trigger more liquidations in a feedback loop. Hyperliquid data indicates that a significant portion of XRP’s open interest is sensitive to even small price drops. The clustering of entry prices above current levels means liquidations could accelerate rapidly if momentum shifts. Past events in crypto markets show similar patterns during sharp corrections. What Happens If XRP Holds Above Key Support? If XRP manages to stabilize above $1.30, some long positions may begin to regain value. A sustained bounce could reduce liquidation pressure and allow traders to adjust their exposure. However, reclaiming lost ground would require renewed buying interest, potentially from institutional players or retail FOMO. Until then, the overhang of underwater longs remains a drag on upside attempts. Market sentiment is likely to stay cautious until clear signs of accumulation emerge. Frequently Asked Questions Why are most XRP long positions underwater?

Because up to 96

Because up to 96.1% of long entries on Hyperliquid were opened above the current spot price, meaning traders bought at higher levels than today’s value. How could liquidations affect XRP’s price? Liquidations force sellers into the market, increasing supply and potentially accelerating price declines, especially in leveraged markets. What price level is critical for XRP traders now? The $1.30 level acts as a key reference point, with much of the long exposure stacked above it, making it a pivotal zone for sentiment and risk.