XRP Plummets 17% as $46M of Leveraged Longs Liquidated in Biggest One-Day Drop Since 2025
XRP fell roughly 17% in a single trading day, marking its steepest one-day decline since 2025. The rapid drop triggered approximately $46 million in leveraged long liquidations, exacerbating downward pressure. The sell-off followed heightened volatility in XRP markets, with large margin positions concentrated on exchanges contributing to cascade liquidations. Traders reported a sharp increase in short-term selling and stop-loss triggers across major derivatives platforms. The event underscores elevated leverage risk in XRP derivatives, amplifying price moves during sudden sentiment shifts. Key statistics: ~17% intraday decline and ~$46M in long liquidations. Market participants should monitor derivatives funding rates, open interest, exchange order books, and on-chain flows for potential further pressure or recovery signals.
Bearish
A 17% one-day decline combined with $46M of leveraged long liquidations is a clear bearish signal in the short term. Large liquidations increase selling pressure as forced position closures cascade into the market, widening spreads and depressing prices. Historically, similar events (e.g., major altcoin liquidations in 2018–2021 and sudden leveraged crashes in 2022) produced immediate sharp losses followed by periods of elevated volatility and fragmented recovery. In the near term, expect continued downside risk as traders reduce leverage, funding rates potentially spike, and open interest contracts. Recovery will depend on whether liquidity providers and spot buyers absorb the forced selling; longer-term fundamentals for XRP (legal, adoption, or network catalysts) would be needed to shift the bias back to neutral or bullish. Traders should reduce leverage, watch funding rates, OI declines, and significant on-chain outflows as indicators of further stress.