A crypto trader experienced a shocking liquidation on XRP after taking a highly speculative short position with 20x leverage. This event highlights the extreme risks of high leverage trading on cryptocurrency derivative markets.
XRP, the native token of Ripple, remains at the heart of crypto investors’ attention, particularly amid tense regulatory conditions in the United States and speculation surrounding the imminent approval of a spot ETF. But for a trader known as @qwatio, the recent XRP surge marked the end of a disastrous position worth several million dollars.
According to data from Onchain Lens platform, this trader entered a short position on XRP with 20x leverage via the HyperLiquid platform, after already incurring a loss of $3.4 million on previous positions involving XRP and Bitcoin.
This position proved fatal, as the sudden rise in XRP triggered its complete liquidation, drastically reducing the capital in this portfolio. He reached an intraday high of $2.91, triggering a wave of chain liquidations on short positions, starting with our unfortunate trader.
According to data consolidated by CoinGlass, a total volume of $7.6 million was liquidated on XRP in 24 hours, with 64% being long positions and more than 50% of total liquidations occurring on the HyperLiquid platform.
This distribution demonstrates that not only sellers suffered, but also many buyers, reflecting the ultra-volatile nature of this market.
The case of @qwatio illustrates the dangers of excessive leverage in crypto trading:
This liquidation affair highlights the current dynamics of crypto markets, where regulatory uncertainty and speculative movements create a particularly unstable environment for traders using high leverage.
XRP, currently trading around $2.91, remains a flagship token in the crypto universe. For savvy investors, it’s an opportunity rich in potential. If risk is properly managed. Take advantage of this phase to strengthen your positions before the next bullish movement.
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