XRP prices surged nearly double in the past 24 hours following a landmark court ruling, with XRP shorts losing the most money so far this year. According to CoinGlass data, XRP-tracked futures traders lost a total of $58 million as a U.S. judge ruled that the sale of XRP tokens on exchanges did not constitute investment contracts. Of that, shorts lost $33 million while longs constituted the remaining.
The ruling caused large liquidations on crypto exchanges, with Bybit traders seeing the most liquidations at $21 million, followed by OKEx at $14 million and Binance at $14 million. Liquidation occurs when an exchange forcefully closes a trader’s leveraged position due to a partial or total loss of the trader’s initial margin. This can signal the local top or bottom of a price move, allowing traders to position themselves accordingly.
The court ruling also had a positive effect on other altcoins such as Solana (SOL) and Cardano (ADA). Traders likely considered XRP’s partial victory as a favorable outcome for the crypto market, which has been targeted by the U.S. Securities and Exchange Commission in recent months.
Quotes: "XRP prices surged nearly double in the past 24 hours following a landmark court ruling," and "Traders likely considered XRP’s partial victory as a favorable outcome for the crypto market."