XRP News Today: XRP Plunges Below $3 Amid $1.26M Long Liquidation Surge

XRP experienced a dramatic liquidation imbalance on August 19, 2025, as the token faced intense selling pressure amid a broader market correction. Derivatives traders witnessed a 32,474% imbalance in long versus short liquidations within one hour, leading to over $1.26 million in long positions being forced closed as prices fell below $3 [1]. This event underscored the extreme volatility and leverage exposure in the XRP market, with traders caught off guard by the rapid price drop and subsequent margin calls [2].

The liquidation event was not isolated to XRP, as the broader cryptocurrency market recorded $552 million in liquidations over the past 24 hours, with Ethereum leading the losses at $174 million [1]. Analysts have noted that such imbalances often reflect a breakdown in bullish momentum and can signal a deeper correction unless strong buying interest emerges to counter the downward pressure [2]. The drop in XRP pushed it below critical technical levels, including the 20-day EMA at $3.10, with the token now testing support near the 50-day SMA at $2.94 [2].

Traders and investors are now questioning whether the recent selloff is a temporary correction or the start of a more prolonged bearish phase. The inability of XRP to hold key resistance levels has widened the gap between bullish and bearish momentum, complicating the short-term outlook [1]. Institutional flows have also shown divergent patterns, with Ethereum benefiting from record ETF inflows while altcoins like XRP struggle to regain confidence in liquidity and directional bias [2].

For those holding long positions, the imbalance serves as a cautionary sign of the risks associated with high leverage in a volatile environment. Traders are advised to reassess their strategies, including using lower leverage, setting stop-loss orders, and maintaining adequate margin levels to mitigate the impact of sudden price swings [1]. A potential bounce from the $2.94 level could offer short-term relief, with targets at $3.40 and $3.66 if the downtrend is successfully broken [2].

The ongoing bearish pressure on XRP reflects broader market sentiment, with Bitcoin also falling to an 11-day low amid profit-taking and liquidity sweeps [1]. Unless there is a material shift in investor sentiment or macroeconomic conditions, XRP is likely to remain under pressure in the near term. The coming weeks will be critical in determining the token’s trajectory and whether traders can regain control over its price action.

Source:

[1] Coinotag

https://en.coinotag.com/xrp-faces-significant-liquidation-imbalance-amid-market-correction-raising-questions-about-future-trading-strategies/

[2] FXLeaders

https://www.fxleaders.com/news/2025/08/19/daily-crypto-signals-bitcoin-faces-correction-ethereum-etfs-drive-record-institutional-inflows/