Abnormal Market Conditions Spark 1,423% Spike in XRP Liquidation Prices
In the world of cryptocurrencies, the XRP chart may currently appear deceptively calm, but recent events have shaken up the market. A significant liquidation event for XRP occurred on July 24, 2025, when the price plunged over 10%, dipping briefly below $3, triggering close to $1 billion in liquidations primarily from overleveraged long positions.
This sharp crash was caused by a sudden wave of liquidations across multiple crypto exchanges, with a particularly heavy XRP long liquidation of around $89 million within 24 hours, notably on South Korea’s Upbit exchange where about 75 million XRP tokens were sold off that day. The selloff came amid a broader crypto market collapse that saw $100 billion wiped overnight, with XRP leading the losses among top tokens, reflecting a correction after a prior strong rally.
Fast forward to early August 2025, XRP has experienced further liquidations amounting to about $41.4 million in 24 hours, largely from long positions. However, this could paradoxically set the stage for a short squeeze if XRP quickly rebounds, as open interest in XRP futures has decreased significantly from $10.94 billion in July to $8.13 billion, reducing volatility and potentially strengthening the price base.
Technically, key support levels to watch are around $2.76 (50-day EMA) and the $2.79–$2.95 range, while resistance levels stand at about $3.07 (Fibonacci level), $3.32, and $3.65 (July peak). Technical indicators like RSI and MACD show mixed to neutral-bullish signals, indicating possible short-term consolidation but not ruling out renewed upward momentum if positive catalysts or news emerge.
The liquidation event was not the largest in dollar terms, but it had an unusual imbalance compared to other cryptocurrencies. It was less about price and more about positioning in the crypto market. The liquidation footprint of XRP suggests that a lot of conviction was liquidated, indicating that overleveraged traders were caught off guard by the sudden market-wide selloff.
Despite the liquidation event, analysts and traders remain cautiously optimistic about XRP's near-term recovery potential, seeing the correction as a healthy pause rather than an end to the 2025 rally. The price of XRP is currently holding the zone around $2.95, and a move below $2.90 could put bulls in a tight spot, especially if general market weakness continues.
However, a quick rebound could lead to a short squeeze, as the decreased open interest in XRP futures reduces volatility and potentially strengthens the price base. The event may have been a liquidation shakeout, or the start of a larger recalibration in the XRP market.
As always, it's important to remember that no financial losses incurred while trading cryptocurrencies are the responsibility of U.Today.
Hashtags: #XRP News, #XRP, #Ripple News
Sources: [1] U.Today. (2025). XRP Liquidation Event: What Does This Mean for Bulls? [Online]. Available: https://u.today/xp-liquidation-event-what-does-this-mean-for-bulls [2] Cointelegraph. (2025). XRP Liquidation Event Triggers $89 Million in Losses on Upbit [Online]. Available: https://cointelegraph.com/news/xp-liquidation-event-triggers-89-million-in-losses-on-upbit [3] CoinGlass. (2025). XRP Liquidation Event Analysis [Online]. Available: https://coinglass.com/analysis/xp-liquidation-event-analysis
- The XRP trading market experienced a significant liquidation event in July 2025, with close to $1 billion in liquidations, primarily from overleveraged long positions.
- The selloff was particularly heavy on South Korea’s Upbit exchange, where about 75 million XRP tokens were sold off in a single day.
- In early August 2025, XRP underwent further liquidations amounting to about $41.4 million in 24 hours, largely from long positions.
- Despite the liquidation event and ongoing market weakness, analysts and traders remain cautiously optimistic about XRP's near-term recovery potential.
