The XRP price has increased 40% in the last 24 hoursand started the day up 52%. Behind the surprising rebound There was a big short contraction that created massive volatility within a few hours.
It is clear that due to the speed of the rally, the rally was driven by a small drop in futures exchanges.
It took about four hours for the XRP to go from $ 0.2536 to $ 0.3120. It has since fallen to around $ 0.3550 on all major exchanges, including Binance.
What started the big XRP move?
On December 23rd, when the entire market corrected, XRP saw a higher number of sell-offs, outperforming Bitcoin (BTC) and Ether (ETH).
Billing takes place on the futures market When the asset price experiences a large price movement and a long (buy) or short (sell) position is leveraged.
For example, if a trader uses 10 times leverage, a trader can trade an amount that is 10 times higher than the share capital. However, if the price of the asset moves 10% against the position, the position will be liquidated and lose its value.
In the case of XRP, there was a long decline after the US Securities and Exchange Commission filed a complaint against Ripple and two of its executives.
XRP experienced an excess of short positions as the price fell to just $ 0.2138. However, as the market fluctuated a lot, there was a small decline on December 25th.
As a result The price of XRP soared in four hours. Over the past 24 hours, Bybt.com data has shown that XRP futures contracts worth $ 73.5 million have been settled.
Some technical analysts predicted a brief contraction for XRP and noted the trend towards excessive shorts. A pseudonymous analyst named “Crypto ISO” said:
“XRP is likely to go up. After such a big drop, is it wise to cut it back a little with the news already out? I’m not sure what is really the case with the bull and wouldn’t touch it, but neither would I try Much more milking soon. Coinbase’s delisting could be the final blow if that happens. “
XRP continues to face the risk of being delisted from US exchanges.
Analysts continue to disagree over the short- and medium-term future of XRP. Some say even if XRP is considered a security in the US, it is used globally, and as such, the SEC case alone would not mark the end of XRP.
A trader called “Credible Crypto” said that XRP is not a security in Singapore, Japan and some other countries. Wrote::
“90% of Ripple’s customers are not in the US. Over 90% of $ XRP’s trading volume is done on exchanges outside of the United States. $ XRP is NOT a security in Singapore, the United Kingdom, Switzerland and Japan. If you think the SEC case is sending $ XRP to $ 0, you may not be thinking objectively. $ XRP is global. “
However, Demand is still likely to have a big impact on the token, as Ripple is a US based company. And the XRP supply is administered by US citizens. So “Neko,” a cryptocurrency investor, said it was still a big problem. It says:
“This applies to the volume. But they also forget that the management of $ XRP are US citizens, as is the company. If the SEC sees this as collateral, exchanges that interact with U.S. clients must remove them from their list. I wouldn’t say it’s a 0, but it’s still a big problem. “