XRP News Today: XRP's 14% Weekly Drop Triggers $1.3B in Liquidations 30% of Leveraged Positions Wiped Out

XRP’s recent sharp decline from $3.65 to $3.09 has sparked debate over whether the correction represents a necessary market rebalancing or a deeper deterioration in sentiment. The pullback, which erased approximately 14% of the weekly gains, coincided with $1.3 billion in open interest liquidation—about 30% of total leveraged positions—suggesting a typical leverage-driven reset following the asset’s aggressive rally [1]. Analysts have highlighted the significance of the $2.80 support level, where the 1-month volume-weighted average price (VWAP) hovers near $2.86 and the 3-month VWAP sits at $2.57, offering potential downside buffers if the selloff persists [2].

The price action unfolded amid a massive sell-off on Upbit, where 75 million XRP tokens were offloaded over a short period, triggering roughly $90 million in long position liquidations and pushing the price down 15% [1]. This event coincided with broader volatility, including a 19% drop in early July and a 17% decline in mid-July, which together resulted in over $180 million in total liquidations. A critical inflection point occurred on July 1, when XRP fell 11.6% in 24 hours, breaching $3.12—a level identified as a pivotal Fibonacci retracement and Elliott Wave support zone [3]. Analysts like EGRAG CRYPTO emphasized that a rebound above $3.12 could validate the bullish case for a resurgence toward $4.16, while a breakdown below $3.00 would signal structural weakness [3].

Technical indicators remain mixed. While daily XRP/USD and XRP/BTC charts displayed Dragonfly Doji patterns—often signaling reversals—momentum remains a key variable. CryptoWZRD noted that buyers retain control as long as upward momentum holds, with potential targets at $3.30 and $3.65 if resistance levels break [2]. However, the surge in open interest to $10.98 billion in leveraged positions underscores the market’s vulnerability, as seen in a mid-July four-hour period where $41 million in longs were liquidated [3].

The selloff has been attributed to a combination of profit-taking after a 68% rally from early July, regulatory uncertainties, and thin derivatives liquidity. EGRAG CRYPTO described the drop as a “classic post-rally retracement” driven by traders locking in gains, rather than a fundamental shift in XRP’s trajectory [3]. Meanwhile, AInvest and CryptoAdventure acknowledged “overheated conditions” as a catalyst but suggested the correction could precede a stronger rebound in the short term [1].

As the market digests these developments, the next few days will test whether buyers can stabilize XRP above $3.00. A sustained recovery above $3.12 would reinforce the “healthy reset” narrative, while prolonged weakness below $2.80 could deepen the correction. With $735 million in total crypto liquidations reported during the selloff—placing XRP second only to Ethereum behind in losses—systemic fragility remains a concern [3].

Sources: [1] [XRP News Today: XRP Drops 17% as Liquidations Top ...](https://www.ainvest.com/news/xrp-news-today-xrp-drops-17-liquidations-top-114m-technical-indicators-signal-bullish-recovery-potential-2507/) [2] [XRP Eyes Drop Towards $3, But Bullish Narrative Is Still In ...](https://www.livebitcoinnews.com/xrp-eyes-drop-towards-3-but-bullish-narrative-is-still-in-play/) [3] [Massive Liquidations Hit XRP: $3.12 Becomes ...](https://coinpaper.com/10131/massive-liquidations-hit-xrp-3-12-becomes-the-battleground)