The cryptocurrency market witnessed a brutal wave of volatility on Thursday, leading to a staggering $1.04 billion in total liquidations within a single 24-hour window. Data from CoinGlass reveals that the vast majority of these losses—approximately $868 million—came from long positions, as traders who had bet on price increases were caught off guard by the sudden downward spiral. Short positions accounted for the remaining $174 million, illustrating the chaotic nature of the current market environment.
Among the hardest hit was XRP, the native token of the XRP Ledger. The digital asset suffered a significant blow, dropping as much as 15% during the height of the sell-off. At its lowest point, XRP touched $1.32, marking a steep decline from its intraday high of $1.51. This sharp downturn extended a three-day losing streak that began on February 3, resulting in a 27% loss for XRP holders over the past week alone. In total, over $34 million in XRP positions were liquidated as the broader market saw nearly half a trillion dollars in total market capitalization vanish.
Despite the prevailing "blood in the streets" sentiment, Vet, a prominent XRP Ledger validator and contributor, took to social media to offer a much-needed dose of optimism. Vet emphasized that while the current price action is painful, it is simply "part of the journey." He reminded the community that the underlying technology is continuously improving and that the crypto industry is fundamentally "destined to revolutionize finance." His message urged investors to prioritize their mental well-being first, assuring them that the market has a historical tendency to bounce back from such crashes.
From a technical perspective, there are flickering signs of hope for XRP. The Daily Relative Strength Index (RSI) has plunged to 19, a level deep in the "oversold" zone, which often precedes a relief rally. Additionally, XRP’s open interest has seen a slight uptick of 3.23%, suggesting that some traders are positioning themselves for a potential "short squeeze." If a recovery takes hold, analysts point toward $1.91 and $2.47 as the next targets. Conversely, if the sell-off persists, the psychological support at $1.00 will be the critical line of defense for the bulls.
