The crypto market experienced severe fluctuations over the past 24 hours, resulting in over $440 million in liquidations. Bitcoin and Ethereum were among the biggest losers.
Dominance of Long Liquidations in Major Cryptos
According to CoinGlass's liquidation map, long position liquidations dominated among major cryptocurrencies such as Bitcoin and Ethereum. Most liquidations occurred on platforms like Bybit and Binance. The sudden spikes in liquidation volumes placed significant pressure on investors using leverage, altering the market landscape.
Noticeable Fragility in Ethereum’s Movements
Ethereum dropped sharply from over $4,700 to around $4,100. This correction returned the Relative Strength Index (RSI) indicator to a neutral zone, although the liquidation volumes suggest a weakening buying strength. If sell-offs continue, the $3,600 price level could come into play, while the 50-day exponential moving average at $4,040 serves as the primary defense line.
Impact of Liquidations on Large Cryptocurrencies
Additionally, the ripple effect of these liquidations impacted large-cap cryptocurrencies like XRP and Solana, which collectively saw over $30 million in liquidations. The reduction in leveraged positions in recent days has elevated risk management to the forefront, laying the groundwork for continued volatility in the market.
The current situation in the cryptocurrency market underscores the fragility of ongoing trends, particularly for Ethereum and Bitcoin. Attention should be paid to potential corrections and risks associated with maintaining open positions.
