XRP News Today: Trade War Fears and Leverage Trigger XRP's $707M Liquidation Crisis

The global cryptocurrency market experienced its largest liquidation event in history on October 10, 2025, as U.S. President Donald Trump announced a 100% tariff on Chinese imports, reigniting fears of a trade war. This triggered a $19.14 billion liquidation within 12 hours, with total 24-hour losses reaching $19.31 billion. XRP, the native token of the Ripple network, was among the hardest-hit assets, suffering a $1.27 drop in hours as its price plunged from $2.80 to $1.53, marking a 45% decline from its prior range TheCryptoBasic^[1].

The collapse was described as a "Black Swan" event by Chad Steingraber, a prominent XRP community analyst, who highlighted the unprecedented scale of leveraged trader losses. CoinGlass data showed $707 million in XRP positions liquidated over 24 hours, with long positions accounting for $615.46 million of the total. This marked the largest liquidation in XRP's history, as leveraged traders faced catastrophic losses amid the broader market selloff TheCryptoBasic^[1].

The price volatility was exacerbated by the broader macroeconomic context. The crypto market capitalization fell below $4 trillion, while Bitcoin dropped 10% to $111,480 and Ethereum fell 16% to $3,700. XRP's decline was particularly severe, with its 24-hour drop of 14.47% and weekly loss of 20.3% underscoring its vulnerability to systemic risk-off sentiment . Analysts attributed the crash to a combination of Trump's tariff announcement, existing overbought conditions in crypto, and the timing of crypto options expiries .

Steingraber's analysis emphasized XRP's structural challenges. Despite its role in cross-border payments, XRP's price action revealed "lower highs" since July 2025, indicating weakening buyer conviction compared to Bitcoin's new highs. CoinDesk's technical analysis noted that XRP's inability to surpass previous peaks while Bitcoin surged suggested institutional underperformance and potential for further declines below its $2.65–$2.70 support zone Coindesk^[3].

The liquidation event also exposed the token's exposure to leveraged trading. CoinGlass data revealed that XRP's short positions accounted for $91.96 million in losses, while long positions bore the brunt at $615.46 million. This imbalance highlighted the concentration of risk in leveraged positions, with traders on platforms like Binance and Hyperliquid facing forced closures TheCryptoBasic^[1].

Looking ahead, XRP's path remains uncertain. While some analysts, including Steingraber, have previously theorized scenarios where XRP could reach $20,000 through institutional adoption and scarcity-driven demand, the recent crash underscores immediate challenges. The token's circulating supply on public exchanges has dwindled, with institutions increasingly hoarding XRP as a reserve asset, a trend Steingraber has long predicted . However, current market dynamics-marked by regulatory uncertainty, macroeconomic pressures, and ETF approval delays-suggest a prolonged period of volatility.