Last Updated on 3 mins by Dylan Hood

XRP, the digital currency associated with Ripple Labs, has recently attracted significant attention due to its surging price. However, there are indications that the excitement surrounding its performance may be overstated, as market data tells a different story.

Despite a favorable legal ruling and a dedicated community, XRP appears to be struggling to inspire the same level of confidence as Bitcoin (BTC) and Ethereum (ETH) among investors.

Liquidation data from CoinGlass has revealed that in the last 24 hours, approximately $4.20 million worth of XRP has been liquidated. What’s intriguing is that short positions accounted for a mere $66.13K in losses, while long traders recorded a substantial $2.09 million loss.

The Liquidation Data Raises Questions About XRP’s Price Rally

This data underscores the fact that the recent ruling by Judge Analisa Torres, which classified XRP as not a security when traded on exchanges, failed to ignite significant bullish sentiment for the cryptocurrency.

Comparing this liquidation data with that of Bitcoin and Ethereum reveals a clear contrast, further suggesting that XRP is still considered a less promising digital asset. This contrast casts doubts on the bullish predictions made by some experts following the recent legal ruling. It appears that despite its strong community support, XRP’s growth indicators are not aligning with the optimism that has surrounded it.

XRP is currently priced at $0.529 according to CoinGecko, having experienced a 5.0% growth in the past 24 hours and a seven-day rally of 7.4%. Despite these gains, market observers remain cautious about the coin’s long-term potential.

XRP Trajectory: Differing Perspectives

In a separate report, a contrasting perspective suggests that XRP could still experience significant growth in value. This report highlights the fact that during the protracted legal battle with the US Securities and Exchange Commission that began in December 2020, XRP shifted its focus to overseas markets.

This strategic move has resulted in impressive client wins in emerging markets, where Ripple’s payment platform has the potential to make a substantial impact.

These client victories have paved the way for promising developments, particularly in projects related to cross-border payment systems and Central Bank Digital Currencies (CBDCs). These initiatives hold the potential to drive the long-term value of XRP, as they expand its use cases beyond speculative trading.

XRP’s recent price surge may have captured attention, but skepticism still prevails in the market. While some believe in its potential for further growth, the current data and market sentiment suggest that XRP still faces challenges in solidifying its position as a top-tier digital currency.