Bitcoin's Surge Triggers $300 Million in Short Liquidations, Sending XRP Soaring
A sudden surge in Bitcoin's price has triggered a massive short liquidation on exchanges, sending XRP prices soaring. As Bitcoin broke through $84,000, around $300 million in positions were liquidated, with shorts accounting for 96% of that amount. This buying frenzy helped all coins with significant short positions, but XRP stood out due to its crowded short market and lagging performance.
XRP's price surge was largely driven by the forced buying, which saw it gain 6.4% in a single day. However, despite this increase, XRP is still down 1.5% over the past 30 days and about 20% for the year. The coin's price is now above its 200-day moving average of $1.35 and its 20-day average of $1.32, but a golden cross, where the 50-day moving average crosses above the 200-day average, may soon occur.
However, XRP's price increase may be short-lived as it is largely driven by liquidation and not new buying pressure. Ripple's upcoming event on October 1, which will release one billion XRP from escrow, could also negatively impact the price in the days leading up to it.