XRP Rally Started 1 Year Ago – And Traders Lost $700 Million In a Flash
Analysts say XRP’s downturn reflects profit-taking and fading bullish momentum, though potential ETF approvals could restore investor confidence.
XRP has plunged to its lowest level in six months amid a widespread crypto sell-off that wiped out nearly $20 billion from the market in 24 hours.
According to BeInCrypto data, the token dropped more than 13% to as low as $1.53 before recovering slightly to $2.44 at press time. This marks the second time in 2025 that XRP has fallen below the $2 threshold.
Is XRP Bullish Momentum Exhausted?
Data from Coinglass shows that the sudden price decline triggered over $700 million in liquidations from traders speculating on XRP’s price performance.
Notably, more than $600 million in long positions were liquidated as traders betting on a price rebound were caught off guard by the sharp downturn.
The sell-off also saw XRP’s open interest drop from over $8 billion to around $5 billion, signaling a rapid unwinding of leveraged positions.
Despite this, derivatives activity surged, with XRP’s trading volume in futures and options exceeding $23 billion — its highest level since July. This spike suggests that traders rushed to hedge their positions or capitalize on short-term volatility.
XRP’s Derivatives Volume. Source:
Coinglass
The market slump coincided with renewed macroeconomic tension following President Donald Trump’s announcement of a 100% tariff on Chinese goods. The move rattled risk assets, including cryptocurrencies, and fueled a wave of selling pressure.
Yet XRP’s decline also reflects internal market dynamics of the token.
Glassnode data indicates that the token’s bullish momentum has waned since late 2024 as investors who accumulated below $1 took profits during rallies above $2 and $3.
XRP’s Realized Profit Margin. Source:
Glassnode
Notably, the two profit-taking waves of December 2024 and July 2025 aligned with the asset’s price peaks and delivered over 300% gains for early holders.
Now, with those gains realized and broader market sentiment turning risk-averse, XRP appears to have entered a consolidation phase.
However, market analysts have pointed out that new catalysts, like the impending spot ETFs approval, could reignite investor confidence in the digital asset.
In addition, they noted that the continued growth and adoption of Ripple’s blockchain technology and XRP Ledger could also fuel the crypto token’s ascent.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
The Kiwi defies hot US inflation as Fed pause bets weaken the USD
Apple says iPhone Duo demand is "unprecedented," pre-orders sold out within minutes, deliveries postponed until January next year
Within minutes of opening pre-orders for Apple's first foldable screen phone, iPhone Duo, the delivery period was extended to the end of January next year, affecting all colors and storage configurations. Analysts from Bloomberg Intelligence have raised their sales expectations, believing that sales may surpass the target of 14 million units and $28 billion. On Friday, Apple's stock price rose slightly by 0.43%.
Credit panic hits AI trading: CoreWeave bond yields remain high, Nasdaq posts biggest weekly drop since late June
Concerns over the debt risk of AI infrastructure companies continue to rise. Yields on some CoreWeave bonds briefly exceeded 15% on Thursday and remained elevated on Friday. CoreWeave's stock price plunged another 12% on Friday, and the Nasdaq Composite Index fell about 4.5% for the week. Analysts point out that as capital costs rise to unbearable levels, companies will have no choice but to reduce their capital expenditures.
Philadelphia Semiconductor Index Experiences Longest Losing Streak Since 2008; Jensen Huang Responds Calmly: Short-term Fluctuations Won't Change AI's Long-term Growth Prospects
Despite recent sell-offs in AI-related stocks, Nvidia CEO Jensen Huang remains confident in the long-term prospects of the AI industry.
Crypto prices
More
