The chart shows particularly sharp and frequent spikes in liquidations from the end of July through September. This indicates that leveraged positions in the XRP derivatives market were liquidated heavily during certain periods.

In the current data, long liquidations appear to be higher than short liquidations, suggesting that long positions have been more heavily affected by recent downward price movements. This situation may create a liquidation risk for long positions. However, there has been a decline in liquidations, which may indicate that liquidation pressure is decreasing.

The fact that NVT has fallen by 69.28% to 36.97 indicates a significant change compared with the previous period. However, this decline needs to be interpreted correctly. If XRP’s transfer volume has increased while NVT is falling, network activity may have strengthened relative to the market capitalization. This is positive in terms of the price potentially receiving greater support from underlying network activity.

The recent decline in liquidations and the drop in NVT may indicate an environment where price movements can continue under lower leverage pressure. If spot market demand also accompanies these developments, it could provide a stronger signal. The decline in liquidations may offer some relief; however, for a sustained rise, spot buying, trading volume, and price structure would need to support the move.

Written by PelinayPA