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XRP’s leveraged market went through a series of brutal flushes this week. In just five days, derivative traders who bet on the token’s upside have lost more than $30 million, according to CoinGlass. What happened is a sudden price reversal after a moment of optimism on November 4 that caught buyers off guard and set off a cascade of liquidations all across the crypto board.

Liquidations hit extreme levels by Friday, running 2.74 times above the weekly average. Exchanges' data shows a completely lopsided picture where longs account for 95.54% of all daily losses worth $16.01 million out of a total $16.75 million. Shorts got off with a scare, losing a token $746,000. Of course, Binance as the most liquid platform was the place of the most pain, with $8.06 million in leveraged positions on XRP wiped out on the exchange.

What played out is a textbook long squeeze. Traders opened overleveraged positions hoping the rally would continue, got trapped in a falling trend, and their forced closures started knocking each other out down the chain. More than 3,600 traders worldwide lost their deposits completely.

Where’s the bottom?

XRP dropped 6.41% over the past days on the spot market, leaving the price pinned at $1.1799 by the weekend. How strong sellers are is evident by the XRP/USD chart on TradingView. Here the weekly candle comes to closure with a long upper wick, meaning every bullish attempt to take control and buy the dip above $1.22 was shut down.

For XRP buyers, the technical picture looks worrying:

  • The price has settled below key moving averages, the 50 EMA and 100 EMA. The latter has now turned into hard resistance at $1.271.

  • The Relative Strength Indicator is at 33.21 with the 'bearish' divergence appearing earlier on the chart fully playing out, and the trend is clearly pointing down.

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The next dangerous trigger for the market is at $1.1588 as that’s where the nearest “long pain” zone lies, according to Coinglass. The price is just 1.79% away from that line.

Algorithms put the odds of the chart testing this level within the next 24 hours at roughly 50%. If bulls give up this line too, a liquidation cascade will force-close another 928,900 in positions and speed up the decline. Buyers right now have no support above current XRP price, while sell pressure below is estimated at under half a million of dollars.