As Ripple (XRP) has fallen to around the $1.30 level, an analysis suggests that in the derivatives market, the liquidation of existing long positions is continuing rather than an expansion of new short selling. Notably, while the downtrend persists, the increase in new short positions has been limited, whereas long position liquidations continue.

On the 23rd, 'tung_command (tungcommand01),' active in the CoinMarketCap community, assessed that long position liquidations have continued in the XRP derivatives market while short positions have remained at a certain level. He explained that during XRP's recent decline, short bets increased only slightly, and major trading activity has been concentrated on long position liquidations. This means the decline in XRP's price is difficult to explain solely by an expansion of new short selling.

■ What Is Long Position Liquidation?

Long position liquidation refers to the closing of buy positions due to mounting losses from price declines or insufficient margin. In particular, when leveraged long positions are forcibly liquidated, additional sell orders are generated, which can increase downward pressure on the price. However, the actual scale of liquidations and the proportion of forced liquidations must be verified through separate trading data.

■ Short Selling Still Dominant... Conditions for a Turn to an Uptrend

Tung_command evaluated that short positions currently remain dominant. He also stated that a shift to an uptrend would require buy position volume to exceed short position volume.

However, a reversal to an uptrend cannot be confirmed solely by the relative size of buy and sell volumes. Factors such as the scale of position liquidations, changes in open interest, and spot market buying pressure should be examined together. ■ Key Variables Ahead

XRP's current price is $1.30. The market is watching whether the liquidation of existing long positions subsides and whether new buying flows in, as variables for judging the future price direction.

Meanwhile, the dominance of short selling and the continued liquidation of long positions mentioned in this analysis were presented without specific exchange-level figures, requiring independent verification.

[This article is provided for informational purposes as an investment reference and does not recommend buying or selling any specific asset. Conditions may vary depending on market circumstances. Investment decisions and the resulting responsibility rest with the investor. AI provided some assistance.]