XRP Bullish Investors Suffer $70 Million Loss as Ripple-Related Token Plummets 7%

XRP experiences a significant pullback amid a cooling risk appetite across the entire crypto market. The derivatives market’s position structure has turned this decline into a liquidation-driven sell-off. In the latest dip, XRP fell approximately 6.7%, dropping from about $1.88 to $1.75. Data also shows that the total amount of XRP futures liquidations exceeded $70 million, with the vast majority being long positions forced to close.

The focus of this decline is not due to any specific negative news about a particular coin, but rather the rapid collapse of leveraged long positions after key technical levels were broken. As XRP broke below previous support levels, forced liquidations accelerated the decline, shifting market attention to whether the short-term support around $1.74–$1.75 can hold.

XRP News Background: Decline Driven by Position Structure Rather Than News

XRP’s recent drop coincided with the overall crypto market correction, with Bitcoin weakening dragging high-beta assets under pressure. This move was not triggered by any sudden event specific to XRP but reflected overly crowded long positions that became extremely fragile as spot momentum waned.

In leveraged markets, liquidations often amplify downward pressure in a very mechanical way: when prices move against maintained margin thresholds, positions are forcibly closed, further exacerbating sell-offs and creating a “stampede” effect. This phenomenon is especially pronounced when positions are highly concentrated on one side, particularly when prices break through obvious support zones.

XRP Price Movement Review: Rapid Drop from $1.88 to $1.75

The XRP market this time displayed three main features: a sudden breakdown, surged trading volume, and a brief stabilization.

XRP declined about 6.7%, from roughly $1.88 to $1.75. Afterwards, the market tested the lower boundary around $1.74, with short-term buying interest, and closed within a narrow range of $1.74–$1.76.

It is noteworthy that this decline occurred after XRP lost the $1.79 support level, which was previously viewed as a structural bottom. Once this “floor” failed, the sell-off self-reinforced: liquidation positions surged, buy orders withdrew, and short-term volatility increased.

XRP Technical Analysis: $1.79 Support Turns into Resistance

From a technical perspective, XRP exhibited a typical “support breach” pattern. XRP decisively broke below $1.79, triggering liquidation-driven selling that pushed the price down to around $1.74 intraday.

Traders also focus on two details when interpreting this move:

First, the breakdown was accompanied by very high trading volume, which usually indicates not just liquidity-driven volatility but also clear action by major players, rather than minor shakeouts.

Second, the rebound attempt appears more like a stabilization rather than a reversal. The price only modestly recovered, encountering resistance at $1.76, with volume gradually decreasing, indicating the market is in a wait-and-see mode after forced selling, rather than initiating a new upward trend.

Within this structure, the previous support zone of $1.79–$1.82 is now widely viewed as a resistance band. If XRP cannot strongly re-enter this zone, upside potential may be limited, and traders tend to see the rebound as a supply test.

Traders’ Outlook on XRP: $1.74 as a Key Defensive Line

The subsequent movement of XRP revolves around several key price levels.

Traders are watching the $1.74–$1.75 zone as immediate support. If this holds, and liquidation pressure eases, the market may enter a consolidation phase. If support remains effective and liquidity recovers, the market might attempt to rebuild structure—but only if XRP reclaims $1.79 and breaks through $1.82, making the bullish case more convincing.

If $1.74 fails, further downside opens up: the next support levels of $1.72 and $1.70 are on traders’ radar. If leverage remains high, new buy interest or sharp volatility could occur at these levels.

The core lesson from this move is the high correlation and sensitivity involved. XRP’s decline was highly linked to the overall crypto market trend, with short-term direction more influenced by technical levels and derivatives position structure rather than news.

How XRP Traders on Gate Can Rationally Respond to Volatility and Avoid Blindly Chasing or Fearing

For investors aiming to participate in XRP trading during liquidation-sensitive phases, discipline often outweighs prediction. The market can be highly volatile in liquidation zones, with forced liquidations potentially triggering quick rebounds after selling pressure is released.

On the Gate platform, traders can monitor the XRP/USDT spot price and, when trading derivatives, pay close attention to key levels such as $1.74–$1.75 (support) and $1.79–$1.82 (resistance). It’s important to note that no single price zone guarantees absolute safety, but these areas often represent points of maximum liquidity and position changes.

When liquidations dominate the market, it’s also crucial to understand what liquidation amounts signify: they are the result of leveraged positions being forcibly closed after adverse price moves, which can amplify intraday trend volatility. In other words, $70 million in liquidations not only reflect losses but also demonstrate how excessive leverage can turn a normal correction into an extreme market event.

XRP Core Conclusion: The Current Drop Was Driven by Leverage, Key Levels Will Shape Future Moves

The core insight—XRP longs lost about $70 million as the price fell roughly 6.7%—clearly illustrates how leverage and position structure can magnify broad market declines into a sharp XRP correction.

Going forward, traders see $1.74–$1.75 as short-term support, while the $1.79–$1.82 range remains a critical resistance zone that must be reclaimed. In the short term, this structural framework—rather than news—may continue to be the most practical way to assess XRP’s future direction.