XRP Prices have risen 40 percent in the last 24 hours, up 52 percent from the previous day. Behind the amazing rally was a huge short-lived squeeze that caused a great deal of unrest in just a few hours.
This is due to the fact that the pace of the race has pushed through the futures exchange.
It took four hours to raise the XRP from $ 0.253 to $ 0.312. Since then, it has recovered around $ 0.3550 in major exchanges, including Binance.
What causes XRP short pressure?
When the price of an asset sees a large price movement and the long (buy) or short (sell) position is excessive, the liquidation occurs in the futures market.
For example, if a trader uses 10x leverage, a trader can trade 10 times more than the base capital. If the price of an asset moves in the opposite direction by 10%, it is canceled and has no value.
The US Securities and Exchange Commission has come under increasing pressure over the XRP case Complaint filed against Ripple And two of its executives.
The price of XRP dropped to $ 0.2138, resulting in an extremely short XRP. However, on December 25, there was little change as the market was volatile with shorts.
As a result, XRP prices rose within four hours. In the last 24 hours, Bybt.com reports that XRP futures contracts worth $ 73.5 million have been canceled.
Some technical analysts have found the potential for very short scaling by predicting XRP short-term scaling. An anonymous researcher known as Crypto ISO He said:
“XRP may be up. Is it wise to shorten after so much news? Not sure what the bull case is, we will not touch it, but we will not overdo it.
XRP is at risk of being removed from US exchanges
Analysts still distinguish between the short- and medium-term future of XRP. When some consider XRP to be secure in the US, it is used worldwide. The SEC alone is said to end XRP.
An anonymous trader known as “Credible Crypto” said that XRP is based in Singapore. He said there was no security in Japan and other jurisdictions. he Posted by:
“90% of Ripples customers are not US. 90% of the $ XRP trade volume is on non-US exchanges. $ XRP is not secure in Singapore, UK, Switzerland and Japan.
Ripple is a US-based company that provides XRP support, so litigation could have a major impact on the sign. Managed by Americans: As a result, cryptocurrency investor Neko says it is still a big issue. he Mentioned:
“It’s about this volume. Yes, the management of $ XRP is American and the corporation has forgotten you too. If the SEC defines it as a security, it must cancel the exchange with US customers.