XRP prices have seen significant volatility over the past 24 hours following a notable court ruling. As a result, XRP short traders recorded the highest losses of the year. According to data from Coinglass, futures traders tracked by XRP suffered losses of approximately $58 million after a U.S. judge ruled that selling XRP tokens on exchanges did not constitute investment contracts.
Of 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 crypto exchange Bybit witnessed the most 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 a partial or full loss of initial margin. This action takes place when a trader does not meet the margin requirements for a leveraged position or does not have sufficient funds to sustain the trade.
Significant sell-offs can sometimes indicate a local high or low in price movement, allowing traders to adjust their positions accordingly.
XRP price soared 70% following the positive result
The court ruling had an impact beyond XRP, causing price jumps for altcoins like Solana (SOL) and Cardano (ADA). Traders likely interpreted XRP’s partial win as a favorable outcome for the broader crypto market, especially as the U.S. Securities and Exchange Commission investigated allegations of token issuers offering securities to US investors in recent months.
Ripple’s big win also had a positive impact on the entire cryptocurrency market. According to CoinMarketCap datathe global crypto market capitalization has also increased by 6.32% in the last 24 hours.