Mass token sale tonight XRP provoked the collapse of the entire cryptocurrency market. Panic led to the triggering of a huge number of stop orders, which provoked the liquidation of long positions. Due to the long squeeze, some coins lost half of their value in a matter of minutes. Today we will consider some of them, and let’s start with the hero of the “celebration”.
The catalyst for the XRP collapse was a lawsuit by the US Securities and Exchange Commission (SEC), in which Ripple’s management is accused of illegally selling tokens to retail investors. At the request of the plaintiff, an injunction may be imposed on Ripple from further sales, and they will also need to return all collected funds.
Cryptocurrency funds began to get rid of this digital asset, the value of which has decreased by 60% since December 18.
Should you buy ripple at current prices?
I will refrain from shopping for now, because it is still unknown how all these proceedings will end. I will start catching the “falling knife” if the price drops another 65-70%. The upper limit is set at 0.1200, the lower limit is set at 0.0200. The total risk for a series of these transactions does not exceed 10%.
The rest of the coins are not traded at InstaForex, so we will consider them only as examples with long squeezes.
Sushi is a defi-token that is paid as a reward for staking cryptocurrency assets. Within 30 minutes, he squeezed 52% and then, as if nothing had happened, returned to the broken support level.
A similar case happened with EOS: breakout of the support level, triggering of stops, liquidation of margin positions, price return.
And our long squeeze marathon ends with a token that is quite popular in cryptocurrency circles LINKwhose customers were out of luck tonight and some of them got a little haircut.
What conclusions can be drawn?
Thanks to the knowledge of the mechanics of the market and with strict adherence to the MM, you can not only not get under the rink, but also make good money on this.