- XRP recorded its largest long liquidation day since November, totaling $29.7 million.
- A brief flash crash to $1.84 triggered most forced closures.
- Futures data shows growing uncertainty as short positions begin to dominate.
XRP has taken a sharp hit as the broader crypto market slides into a renewed downturn, triggering the token’s largest wave of long liquidations in more than two months. A sudden drop below the key $2 psychological level caught leveraged traders off guard, intensifying losses as bearish pressure spread across digital assets.
The sell-off comes amid a wider market retreat that has erased roughly $150 billion in total crypto market value over the past five days. While most major tokens are under pressure, XRP has emerged as one of the hardest hit during this phase of the decline.
Market-Wide Weakness Sets the Stage
After pushing the global crypto market to a fresh yearly high in mid-January, momentum faded quickly. Sellers regained control as resistance held, pulling prices lower across Bitcoin and major altcoins. Since the peak, the total market capitalization has fallen by nearly 6%, signaling a clear shift in short-term sentiment.
XRP mirrored this weakness but with sharper downside volatility. The token dropped more than 4% in 24 hours, briefly plunging to $1.84 in a rapid move that unfolded within minutes. Although prices later rebounded near $1.96, the damage was already done in the derivatives market.
XRP Flash Crash Triggers Liquidation Spike
The sudden dip to early-January lows forced a cascade of long liquidations. As leveraged traders were flushed out, XRP recorded roughly $29.7 million in long positions wiped out in a single day. This marks the largest long liquidation event for XRP since early November 2025 and the biggest seen so far this year.
Notably, long positions accounted for the overwhelming majority of the damage. Shorts faced minimal pressure in comparison, highlighting how unbalanced positioning had become before the drop. In total, long trades made up about 96% of daily liquidations, pointing to a market that was heavily leaning bullish just before prices broke down.
Futures Data Shows Growing Caution
Looking beyond the single-day figures, liquidation data over the past 24 hours paints an even more cautious picture. More than $40 million in XRP futures positions were closed, with long traders again bearing nearly all the losses. Most of this activity occurred within a narrow 12-hour window, underscoring how quickly sentiment shifted.
Interestingly, trader positioning remains mixed. While Binance accounts still show a strong bias toward long exposure, the overall market ratio has flipped in favor of shorts. This divergence suggests uncertainty is rising, with traders split between betting on a bounce and bracing for further downside.
Also Read: XRP Whales Go Quiet — So Why Is the Price Still Falling?
XRP’s latest liquidation surge highlights the risks of crowded long trades during periods of market stress. The loss of the $2 level has shaken confidence, even as prices attempt to stabilize. With volatility elevated and sentiment divided, XRP’s next move is likely to depend on whether broader market pressure eases—or deepens—in the days ahead.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of CoinBrief.io. Before making any investment decisions, you should always conduct your own research. CoinBrief.io is not responsible for any financial losses.
