XRP News Today: Leveraged Altcoins Trigger $735M Liquidations in Crypto Sell-Off

The cryptocurrency market faced a dramatic sell-off on July 9, 2025, as a sudden price decline triggered $735 million in liquidations across leveraged positions. Altcoins bore the brunt of the losses, with Ethereum (ETH) leading the crisis at $152.78 million in liquidations, followed by XRP ($88.58 million) and Solana (SOL) at $41 million [1]. Bitcoin, while also impacted, accounted for $65.29 million in liquidations—a fraction of the damage seen in smaller cryptocurrencies [1]. The rapid depreciation of altcoins highlighted the heightened risk appetite among investors, particularly those using high leverage to amplify returns, which ultimately accelerated losses during the sharp downturn [1].

CoinGlass data revealed that long positions dominated the liquidations, with $625.5 million wiped out in aggressive bullish bets [1]. This figure underscores the prevalence of speculative trading in the altcoin space, where traders had ramped up exposure ahead of the correction. Ethereum’s price dropped 3.6% to $3,540, while XRP fell 6% to $3.25—a 12% weekly decline for the latter [1]. The sell-off was exacerbated by profit-taking at resistance levels, including Ethereum’s approach to the $4,000 mark and Bitcoin’s surge above $118,000 earlier in the week, which prompted large holders to offload assets [1].

The volatility peaked in a four-hour window, during which $288.21 million in liquidations occurred. Analysts attributed the crisis to overexposure in leveraged trading, noting that high leverage magnifies losses during sudden price swings [1]. XRP’s market capitalization alone plummeted $18.37 billion within 24 hours, dropping from $208.77 billion to $190.4 billion [2]. While this decline followed the initial liquidation wave, it reinforced the fragility of the altcoin sector, particularly for tokens with lower liquidity.

The broader cryptocurrency market retreated to a $3.86 trillion total market cap, with 24-hour trading volume declining 13% to $191.24 billion [1]. This contraction in activity signaled heightened caution among traders, who are now reassessing risk exposure amid the increased volatility. Market participants emphasized that liquidation data serves as a critical indicator of sentiment shifts, with extensive long position closures often signaling panic-driven bottoms [1].

The event has sparked renewed discussions about the risks of leveraged trading in crypto markets. Experts warn that the rapid unwinding of positions reflects speculative overexposure, urging traders to adopt more conservative strategies. Ethereum and XRP are now viewed as particularly vulnerable assets in the current climate, given their disproportionate liquidation figures [1].

Source:

[1] [Ethereum XRP Liquidations Top 54M 41M as Crypto ...] [https://www.ainvest.com/news/ethereum-news-today-ethereum-xrp-liquidations-top-54m-41m-crypto-market-volume-falls-13-2507/]

[2] [XRP Loses $18.37 Billion as SEC Halts Bitwise ETF ...] [https://www.ainvest.com/news/xrp-news-today-xrp-loses-18-37-billion-sec-halts-bitwise-etf-approval-triggering-9-6-price-drop-2507/]

[3] [Crypto Market Plunge Triggers $735 Million Liquidation] [https://en.coin-turk.com/crypto-market-plunge-triggers-735-million-liquidation/]