XRP Defies Short Sellers With Record-Breaking $2 Million Short Squeeze

A recent attempt to short XRP on the one-hour timeframe triggered a wave of forced short-position closures, resulting in a significant short squeeze. The asset not only held key support but also turned aggressive selling into fuel for a $2 million short squeeze, successfully neutralizing a critical imbalance in the derivatives market.

According to CoinGlass, cumulative liquidations across the crypto market exceeded $386.09 million over the past 24 hours, affecting 78,000 traders. However, the most abnormal dynamic developed within a single hour in XRP derivatives, with a volume of short-position liquidations reaching $2.02 million and just $1.58 million in long positions being closed.

The forced-covering cascade among sellers created an hourly liquidation imbalance of 851%. Trapped by margin requirements, bears were forced to close their positions at market prices, which acted as a catalyst for the price increase. On the TradingView chart, the price reaction was immediate: Around $1.38, $1.39, sellers ran into a dense wall of limit buy orders.