The Digital Currency Ecosystem Recovery

The recovery in the digital currency ecosystem has taken a minor twist as most buyers have cooled off, resulting in mild liquidations for altcoins like Dogecoin (DOGE) and XRP. As of now, CoinGlass data indicates that Dogecoin has a larger liquidation figure than XRP, signaling over-leverage for the meme coin.

Dogecoin and XRP Liquidation Outlook

CoinGlass data reveals that DOGE has a total liquidation of $7.67 million, compared to XRP’s $5.22 million. Historically, Dogecoin liquidations are common due to the meme coin’s volatility, impacting long and short traders alike.

Recently, short traders faced the biggest hit with $4.76 million in total liquidations, while long traders experienced $2.90 million in the last 24 hours. Conversely, XRP’s long traders suffered more losses, with liquidations amounting to $3.76 million, and short traders recorded $1.46 million.

Crucial ecosystem updates this month have differentiated DOGE and XRP, leading traders to place larger bets. For instance, the House of Doge has stacked 10 million Dogecoin to establish a strategic reserve around the coin.

XRP’s Strong Fundamentals

On the other hand, XRP boasts stronger fundamental updates that may revitalize prices in the long run. Recent reports state that the U.S. Securities and Exchange Commission (SEC) has officially closed its case against Ripple Labs Inc., thereby classifying XRP no longer as a security.

This change allows XRP to be included in institutional portfolios through direct purchases or XRP ETF offerings, which will positively affect its price.

As of the latest update, XRP was trading at $2.433, down by 0.92%, while Dogecoin saw a more bullish trend, rising 4.95% to $0.1847.