Leveraged XRP traders absorbed heavy losses this week as daily liquidations climbed to 2.74 times the weekly average by Friday, underscoring the scale of damage inflicted on positions betting on higher prices.

Long positions accounted for 95.54% of the day's total liquidations, with $16.01 million wiped out from a combined $16.75 million in losses. Short positions recorded approximately $746,000 in liquidations. Binance experienced the largest share of the damage among exchanges, with $8.06 million in leveraged XRP positions forcibly closed. More than 3,600 traders worldwide reportedly lost their entire deposits during the liquidation events.

XRP is the native token of the XRP Ledger, a blockchain associated with San Francisco-based payments company Ripple, and its derivatives are actively traded across major cryptocurrency exchanges.

Long Squeeze Triggers a Market-Wide Cascade

The liquidation pattern reflected a long squeeze, a situation in which traders using borrowed funds to bet on rising prices are forced to close their positions as the market moves against them. Liquidations are triggered automatically when margin requirements can no longer be met. Because leveraged positions control exposure well beyond a trader's deposited collateral, sharp adverse moves can erase entire balances, an outcome reflected in the reported full deposit losses among thousands of accounts. As XRP reversed lower, leveraged buyers faced mounting losses, and the resulting forced closures added further selling pressure.

The initial optimism surrounding XRP on November 4 quickly gave way to downward momentum. Traders who had positioned themselves for a continued rally became increasingly exposed as prices declined, setting off a chain reaction of forced position closures.

XRP Price Falls to $1.1799 as Technical Indicators Turn Bearish

On the spot market, XRP declined 6.41% over the past several days, leaving the cryptocurrency trading around $1.1799 by the weekend. The weekly XRP/USD chart on TradingView showed a long upper wick, indicating that attempts to push prices higher, including buying activity above $1.22, failed to sustain upward momentum.

The technical outlook weakened further as XRP moved below two closely watched moving averages, the 50 EMA and the 100 EMA. The 100 EMA has since become a resistance level around $1.271, creating another obstacle for buyers attempting to regain control.

Momentum indicators are also reflecting the pressure. The Relative Strength Index (RSI) stood at 33.21, approaching the conventional oversold threshold of 30 that chart analysts use to flag stretched selling conditions, while an earlier bearish divergence had already played out, according to the chart analysis cited in the source material.

$1.1588 Emerges as the Next Liquidation Risk Level

Attention is now turning to $1.1588, identified by CoinGlass, an analytics platform that aggregates liquidation data across major cryptocurrency exchanges, as the nearest liquidation risk zone for leveraged long positions. Liquidation maps of this kind are widely monitored because they reveal where clustered leveraged positions sit, marking price zones where forced closures can concentrate. At the reported XRP price of $1.1799, the market was approximately 1.79% above that level.

The liquidation data also points to an imbalance in market positioning. While buyers face the risk of further forced closures below the current price, estimated sell pressure in the lower zone was less than $500,000, according to the source material.

For XRP traders, the immediate focus remains on whether the $1.1588 level can hold. A further decline could expose leveraged positions to another liquidation wave, while resistance around $1.271 remains a significant technical hurdle for any potential recovery.

Source: Hokanews, via u.today. Writer: Ethan Collins, crypto journalist.