Swyftx Chief Analyst: The Strengthening of Bitcoin May Lead to Liquidation of Highly Leveraged XRP Traders

2024-12-06 16:07:06

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ChainCatcher news, according to Cointelegraph, Swyftx chief analyst Pav Hundal stated that XRP has dropped nearly 18% since hitting its annual high on December 3, and traders are still hoping to see a strong rebound in its price.

However, for highly leveraged XRP long traders, the real danger at the moment is the renewed dominance of Bitcoin. The rotation of funds from XRP to Bitcoin is likely to lead to a broader range of liquidations.

Pav Hundal mentioned that in the past few weeks, we have observed retail investors quickly buying large positions, and the current number of open contracts is nearly double that of 2021 levels. The market seems to have a "hunger for leveraged long exposure to XRP," and despite the price decline, XRP longs are still adding positions, indicating that the market may be approaching the FOMO zone.

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