The cryptocurrency market recently witnessed a dramatic upheaval as Bitcoin [BTC] experienced a sudden, sharp surge, pulling many major altcoins into positive territory. However, this rally also triggered significant market liquidations and exposed a concerning underperformance from Ripple’s XRP, which largely failed to keep pace with its peers.
Market's Sudden Jolt and Widespread Liquidations
Bitcoin initiated a powerful market shift with an astonishing nearly 10% climb in a single hourly candle, causing a ripple effect across the crypto landscape. Ethereum [ETH] reacted strongly with a 6.1% gain, and Solana [SOL] saw a 2.32% increase. This rapid ascent is attributed to a combination of factors, including substantial BTC inflows from major trading desks and whales, alongside a clarifying statement from the U.S. Office of the Comptroller of the Currency regarding banks' ability to execute riskless principal crypto trades. This abrupt price movement caught many traders off guard, leading to a massive wave of liquidations exceeding $423 million in just 24 hours, with short positions bearing the brunt of the losses.
XRP's Struggle to Keep Pace
In stark contrast to Bitcoin and other major altcoins, XRP's reaction to the market surge was notably subdued. While other assets posted substantial gains, XRP's price climbed by only about 1-2% from its pre-spike level, quickly fading back after a brief peak. Technical indicators for XRP, such as the Relative Strength Index (RSI) and On-Balance Volume (OBV), revealed weak buying pressure and limited improvement in demand. This muted performance, especially when set against the backdrop of a broader market rally, highlights XRP's current challenge in maintaining momentum and raises questions about its demand in a recovering market.
