According to Chinese crypto journalist and blogger Colin Wu, recent market volatility has led traders to liquidate their positions after XRP experienced a significant 13% drop in the past 24 hours. The subsequent fall in XRP’s price extended to approximately 17%. Wu shared data from CoinGlass, highlighting the magnitude of the liquidations and price declines across major altcoins such as ADA, LTC, XLM, MKR, FTM, and BSV.
Among the total liquidations, approximately $160 million worth of long positions in these coins were closed. It’s worth noting that XRP’s price had previously surged by around 100% following a verdict by Judge Analisa Torres, who stated that XRP should not be classified as a security, contrary to the SEC’s claims.
The court ruling clarified that XRP sold directly by Ripple to financial institutions should be classified as securities, while programmatic sales and other sales made by Ripple are not. This has sparked a discussion within the community about whether Ripple’s ODL sales and XRP releases from escrow should also be considered securities or not. Ripple CTO David Schwartz responded to this question on Twitter, indicating that Ripple’s legal team is currently investigating the matter.
As of now, the price of XRP has shown a partial recovery, increasing by nearly 6% and currently trading at $0.72193.”