XRP News Today: Crypto Market Liquidates $980M in 24 Hours, XLM, IP, XRP Hit Hard

The cryptocurrency market experienced a significant downturn in the last 24 hours, resulting in the liquidation of over $980 million in leveraged positions. This event was particularly impactful for Stellar (XLM), Story (IP), and Ripple (XRP), which are prominent tokens in their respective blockchain niches. The sudden drop in prices and increased volatility led to a wave of liquidations across both long and short positions, marking one of the most severe one-day shakeouts in recent months.

Stellar (XLM) was at the forefront of this sell-off, experiencing one of the highest liquidation levels recorded on major exchanges. Within a few hours, XLM's price fell below key technical support levels, triggering automatic closures of leveraged positions. This decline coincided with global investor concerns about inflation and interest rates, making risk assets more vulnerable. XLM's steep fall is particularly notable given its previously strong position among cross-border payment tokens. Analysts pointed out that the coin's inability to maintain its 30-day moving average made it a prime target for algorithm-driven liquidations. This correction raises broader concerns about investor confidence in Stellar's utility-driven narrative, especially as competition in the payments blockchain sector intensifies.

Story (IP), a newer token with ambitious network infrastructure goals, also faced significant losses during the liquidation cascade. The asset's fall was exacerbated by its thin liquidity profile and increased exposure to short-term speculative trading. IP had recently gained attention for its innovative network layer design, but the lack of long-term holders and high token velocity made it susceptible to rapid declines. The liquidation of IP is seen as part of a broader trend where newer assets, despite their superior architecture, are being sharply repriced in volatile markets. Its sharp reversal highlights how quickly sentiment can shift when the market becomes risk-averse.

Ripple (XRP), often considered one of the market's top digital assets, was not spared from the sell-off. The token saw a dramatic collapse following a multi-week rally that ultimately failed to sustain. The liquidation erased recent gains and destroyed key support levels at the $0.42 mark. Technical analysts noted that insufficient follow-through buying and declining spot trading volume contributed to the acceleration of long position liquidations. The fall of XRP serves as a reminder that even high-quality tokens with strong use cases are not immune to the risks associated with high leverage.

The liquidation of nearly $1 billion across XLM, IP, and XRP has put traders and institutions on high alert. Some view the correction as a necessary recalibration of the market, while others warn of continued vulnerability in the current macroeconomic climate. The incident highlights the delicate balance between market exuberance and massive sell-offs. Moving forward, crypto traders are likely to reduce leverage and pay closer attention to liquidity, particularly in altcoins that lack market depth or long-term viability.