XRP drops 12% to $1.51 as $500M long liquidation cascade hits

XRP's rally to $1.70 ended in a sharp weekend crash as leveraged long positions were flushed from the market.

XRP fell 12% to $1.51 after a weekend liquidation cascade wiped out roughly $500 million in leveraged long positions across crypto exchanges.

CoinGlass data shows 281,846 traders were liquidated over 24 hours, with about $1.71 billion in total losses across the market. XRP accounted for roughly $121.71 million of that total, one of the sharpest reversals among major cryptocurrencies.

The token had rallied more than 60% in the days before the crash, reaching a seven-month high near $1.70. The fast move attracted heavily leveraged traders, leaving XRP exposed to a sudden reversal. When selling pressure arrived, exchanges began forcibly closing positions that no longer had sufficient collateral, adding further selling pressure.

The broader market recorded approximately $1.35 billion in liquidations over 24 hours, while total market cap fell from $2.68 trillion to $2.55 trillion in six minutes — the biggest flash crash since October 2025. Derivatives open interest dropped $3.34 billion to roughly $55.6 billion.

XRP's open interest reverted to about $3.7 billion after the crash, according to CoinGlass, showing a significant amount of leveraged exposure had been flushed from the market. Short positions actually decreased rather than increased, suggesting the decline was driven by leveraged longs being closed out rather than fresh bearish bets.

Despite the volatility, institutional demand for XRP-linked funds remained resilient. Spot XRP ETFs recorded approximately $39.78 million in net inflows during the week, their strongest weekly performance since May, pushing cumulative inflows to around $1.55 billion.

XRP still remained up roughly 47.5% over seven days even after the sharp pullback, according to market data reported on August 24. The token is now attempting to stabilize around the $1.47-$1.50 area.

On the upside, XRP needs to reclaim the $1.53-$1.55 region before traders can look toward the broader resistance zone between $1.65 and $1.70. The $1.70 level remains particularly important after acting as the recent rally peak. On the downside, the $1.35-$1.40 range is emerging as an important support area. A failure to hold this region could signal the market needs more time to recover.

The weekend crash served as a major leverage reset for XRP. A rally driven primarily by leveraged traders can become unstable, and forced liquidations can amplify declines far beyond what normal spot selling would produce. The next move will likely depend on whether spot demand can take over after the leveraged excess has been cleared.

This article is for informational purposes only and does not constitute investment advice.