XRP News Today: XRP Liquidations Wipe $1.26M in Longs as 5.7% Price Drop Sparks Derivatives Shock

Generated by AI AgentCoin World
Monday, Aug 18, 2025 2:07 pm ET1min read
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Aime RobotAime Summary

- XRP traders faced $1.26M in long liquidations within an hour as price dropped 5.7% to $2.92 amid derivatives market shock.

- Derivatives imbalance saw bullish contracts 32,474% higher than bearish ones, exposing leverage risks during rapid sentiment shifts.

- Broader crypto correction erased $552M in leveraged positions, with Ethereum suffering $174M in long liquidations over 24 hours.

- Market now cautious as traders reevaluate exposure, with XRP trading near $3 and derivatives activity subdued amid ongoing volatility.

XRP traders faced a brutal round of liquidations as $1.26 million in long positions were wiped out in a single hour, according to data from CoinGlass [1]. The sudden selloff sent shockwaves through the derivatives market, with bullish traders bearing the brunt of the losses. The imbalance between long and short positions was stark—bullish contracts exceeded bearish ones by a staggering 32,474 percent, while short-side losses totaled less than $3,880 during the same period [1]. This disparity exposed the market’s vulnerability to rapid reversals in sentiment.

XRP’s price tumbled close to $2.94, a 5.7 percent drop in a 24-hour span, reaching intraday lows near $2.92 [1]. The decline was part of a broader crypto market correction that also affected major players like

Ethereum
and
Bitcoin
. Ethereum saw the largest liquidations, with $174 million in long positions erased in 24 hours. Across the crypto market, over $552 million in leveraged positions were wiped out, reflecting how swiftly leverage can unwind in bearish conditions [1].

The derivatives market showed little balance during the event, with longs dominating and short-side activity nearly nonexistent. As a result, when

XRP
reversed course, long traders lacked the downside protection to absorb the losses [1]. This has led to a marked shift in market positioning, with the derivatives market now significantly less bullish than it was the previous day. Traders are now reevaluating their exposure, and the environment remains volatile.

Following the liquidation wave, XRP trades near the $3 level, with derivatives activity subdued [1]. The event has left traders on edge, signaling a more cautious market outlook in the short term. Whether this selloff triggers a rebound or deepens the correction will depend on how quickly traders return to leveraged positions. For now, the market remains under pressure, with investors watching closely for signs of renewed bullish aggression or continued risk-off behavior.

Source: [1] XRP Traders Crushed as $1.26M in Longs Wiped Out in Market Shock (https://coinmarketcap.com/community/articles/68a368e890a7f065068a5c6b/)