XRP Rally Started 1 Year Ago – And Traders Lost $700 Million In a Flash
XRP has plunged to its lowest degree in six months amid a widespread crypto sell-off that worn out almost $20 billion from the market in 24 hours.
According to BeInCrypto information, the token dropped greater than 13% to as little as $1.53 earlier than recovering barely to $2.44 at press time. This marks the second time in 2025 that XRP has fallen beneath the $2 threshold.
Is XRP Bullish Momentum Exhausted?
Data from Coinglass exhibits that the sudden worth decline triggered over $700 million in liquidations from merchants speculating on XRP’s price performance.
Notably, greater than $600 million in lengthy positions had been liquidated as merchants betting on a worth rebound had been caught off guard by the sharp downturn.
The sell-off additionally noticed XRP’s open curiosity drop from over $8 billion to round $5 billion, signaling a fast unwinding of leveraged positions.
Despite this, derivatives exercise surged, with XRP’s trading volume in futures and choices exceeding $23 billion — its highest degree since July. This spike means that merchants rushed to hedge their positions or capitalize on short-term volatility.
The market hunch coincided with renewed macroeconomic rigidity following President Donald Trump’s announcement of a (*1*) The transfer rattled threat property, together with cryptocurrencies, and fueled a wave of promoting stress.
Yet XRP’s decline additionally displays inner market dynamics of the token.
Glassnode information signifies that the token’s bullish momentum has waned since late 2024 as traders who gathered beneath $1 took income throughout rallies above $2 and $3.
Notably, the 2 profit-taking waves of December 2024 and July 2025 aligned with the asset’s worth peaks and delivered over 300% beneficial properties for early holders.
Now, with these beneficial properties realized and broader market sentiment turning risk-averse, XRP seems to have entered a consolidation section.
However, market analysts have identified that new catalysts, just like the impending spot ETFs approval, may reignite investor confidence within the digital asset.
In addition, they famous that the continued progress and adoption of Ripple’s blockchain technology and XRP Ledger may additionally gasoline the crypto token’s ascent.
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