- Over $79M in XRP positions were wiped out in 24 hours.
- XRP dropped from $2.85 to $2.60 before rebounding to ~$2.82, highlighting the risks of overleveraged bullish sentiment.
- Some analysts see this as a healthy reset amid strong institutional demand, others warn of further volatility.
XRP has emerged as the focal point of the latest wave of crypto liquidations, not because of the sheer dollar value lost, but because of the dramatic imbalance between long and short positions. The overwhelming bias toward bullish bets left traders vulnerable to a swift market correction.
$79 Million in XRP Positions Wiped Out
Data from CoinGlass shows that within a 24-hour window, more than $79 million worth of XRP positions were liquidated. Of this amount, a staggering $78.16 million came from longs, compared to just $890,000 from shorts.
This imbalance equates to about 8,700% ratio, making XRP the most lopsided asset in terms of liquidations during an already volatile day across the market.
Overall, $1.67 billion in crypto positions were liquidated across major exchanges. Longs accounted for the bulk at $1.59 billion, while shorts made up only a fraction. Ethereum traders bore the heaviest losses with almost $500 million in liquidations, followed by Bitcoin at roughly $285 million. Still, XRP’s one-sided liquidation profile stood out as the most extreme case.
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XRP Price Swings Sharply
XRP’s price action reflected this sudden shift in sentiment. The token slid from $2.88 to about $2.60, wiping out entire positions in seconds for overleveraged traders. It has since staged a modest recovery, changing hands at $2.82 at the time of writing.
The violent moves underscored how quickly confidence can unravel when the market becomes too heavily skewed in one direction. With most traders positioned long, the liquidation cascade had little resistance once selling pressure began to mount.
Market Context and Outlook
XRP’s case is particularly notable given its recent resilience, with the token maintaining a price above $2.80 despite broader volatility. However, the one-sided liquidation data reveals the risks of herd behavior among traders who overextend during rallies.
Looking ahead, analysts are split on whether the pullback is a healthy reset or the beginning of a deeper correction. Some point to strong institutional demand, particularly following the record-breaking volume from the recently launched REX-Osprey XRP ETF (XRPR), as a sign that the dip could be temporary.
Others warn that if leverage remains overheated, more volatility may be on the horizon. For now, XRP has become the prime example of how quickly bullish enthusiasm can turn into cascading losses when the market tips against the crowd.
Also Read: ‘More XRP About to Vanish’: Crypto Trader Sounds Alarm
