Earlier today, the price of Ripple’s native token, XRP, experienced a dramatic crash, leading to a shocking 45% discount on a major exchange. The chaos unfolded recently, leaving traders and investors bewildered by the sudden and significant price drop.
The turmoil was most pronounced on the Bybit exchange, where the XRPUSD and XRPUSDT contracts were at the center of attention. The arbitrage (arb) activity between these contracts became the epicenter of the crisis. Observers noted that a staggering 45% discount emerged in these contracts, a situation that lasted for a surprisingly brief 10 to 20 minutes.
Analysts believe that algorithmic market makers were at the forefront of this price anomaly. It is surmised that these automated trading systems faced a shortage of actual XRP tokens required for the coin-margined contract. This scarcity appears to have been exacerbated by the sizable liquidations that transpired in the broader cryptocurrency market.
The crypto market as a whole was subjected to a whirlwind of liquidations, amounting to an astonishing loss of over $1 billion within a mere 24-hour timeframe. This unexpected fallout sent shockwaves reverberating throughout the trading community, impacting nearly 200,000 traders worldwide.
Bitcoin, the flagship cryptocurrency, bore the brunt of the losses. It faced a significant hit as it contributed roughly $498.62 million to the total liquidation amount. Ethereum, another major player in the crypto landscape, was not spared either, experiencing a liquidation worth approximately $308.97 million.
As for XRP, it faced liquidations amounting to $29 million. Other cryptocurrencies also grappled with the consequences, with losses totaling $57.42 million within the same 24-hour period.
XRP Price Analysis & Projection
According to the latest data on CoinMarketcap, the price of XRP stands at $0.505770, exhibiting a decline of 13.64% over the previous 24-hour period. Simultaneously, the trading volume for the past 24 hours has surged by an impressive 119%, reaching a total of $3 billion.
XRP is encountering challenges when attempting to align itself with other cryptocurrencies. Its value has decreased by nearly -20.05% within the past week alone. However, the projected price for XRP in 2023 is expected to range between approximately $0.73 (minimum) and $0.79 (maximum).
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