XRP prices experienced significant volatility in the past 24 hours following a noteworthy court ruling. XRP short traders recorded the highest losses of the year as a result. According to data from Coinglass, XRP-tracked futures traders incurred approximately $58 million in losses after a U.S. judge concluded that the sale of XRP tokens on exchanges did not constitute investment contracts.
Among the losses, approximately $33 million came from short positions, representing bets against price increases, while the remaining losses were associated with long positions. Traders on the crypto exchange Bybit witnessed the highest amount of liquidations, totaling $21 million, followed by OKX and Binance, with liquidations of $14 million each.
Liquidation occurs when an exchange forcibly closes a trader’s leveraged position due to either a partial or total loss of the initial margin. This action takes place when a trader fails to meet the margin requirements for a leveraged position or lacks sufficient funds to maintain the trade.
Significant liquidations can sometimes indicate a local high or low in the price movement, allowing traders to adjust their positions accordingly.
XRP price soared by 70% following the positive outcome
The court ruling had an impact beyond XRP, causing altcoins like Solana (SOL) and Cardano (ADA) to experience price jumps. Traders likely interpreted XRP’s partial victory as a favorable outcome for the broader crypto market, particularly as the U.S. Securities and Exchange Commission has been investigating allegations of token issuers offering securities to U.S. investors in recent months.
The big win for Ripple also had a positive impact on the whole cryptocurrency market. According to CoinMarketCap data, the global crypto market cap has also spiked by 6.32% in the last 24 hours.
