Summary
- It was stated that the risk of a liquidation cascade for Ripple's long positions is related to the rise in Bitcoin dominance.
- Despite Ripple's open interest being twice the size of 2021, long positions are increasing.
- Warned of the possibility of market overheating due to buying movements from individual investors.
An analysis has emerged warning of a potential liquidation cascade for Ripple (XRP) long positions.
On the 5th (local time), Pav Hundal, Chief Analyst at Swyftx, stated in an interview with Cointelegraph that "the risk facing Ripple bulls is the rising Bitcoin dominance," adding that "an increase in Bitcoin dominance could lead to a liquidation cascade of Ripple long positions."
He noted, "Ripple's open interest is twice the size of 2021," and reported that "despite the decline in Ripple's price, long positions continue to increase." He further explained, "In recent weeks, there has been a significant buying movement from individual investors," warning that "the market may be approaching an overheated zone."
Meanwhile, on the 5th, Ripple's open interest (OI) recorded $3.44 billion.
Son Min
sonmin@bloomingbit.ioHello I’m Son Min, a journalist at BloomingBit
