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XRP faced its largest long liquidation since September, wiping out over $17.73 million in leveraged positions.
The Crypto Market lost nearly $19 billion as a macro shock triggered mass liquidations across Digital Assets.
XRP price plunged over 40% before rebounding above $2.30, showing extreme volatility and rapid recovery.
XRP traders faced one of the most dramatic market events in recent months as the cryptocurrency saw its largest long-side liquidation since September. The crash wiped out millions in leveraged positions and triggered a chain reaction across exchanges.
The event has instantly captured the attention of traders and analysts trying to understand what exactly caused the collapse, why it happened so quickly, and what it means for XRP going forward.
According to on-chain and exchange data, nearly $17.73 million worth of XRP long positions were liquidated during the selloff. This makes it the biggest long liquidation event for XRP since September 24.
However, broader reports show that when all types of trader losses are combined, including both long and short liquidations, the total figure rises much higher. Some market trackers estimated that traders collectively lost between $422 million and $700 million during the same time frame. The entire crypto market also suffered a significant shock, with approximately $19 billion in leveraged positions wiped out in just a few hours.
This massive selloff caused XRP to fall sharply. Prices dropped by more than 40 percent at one point, reaching a low of approximately $1.64 before bouncing back to trade in the $2.30 to $2.47 range. Trading volume spiked dramatically, showing that panic selling and forced liquidations were dominating the market.
The price decline began between October 6 and 11, 2025, when the broader crypto market experienced sudden pressure from negative macroeconomic headlines. These headlines affected investor confidence across digital assets, not just XRP. Bitcoin, Ethereum, and other major coins also saw large drops during the same period.
When the first wave of selling hit, many XRP traders were using high leverage in futures and perpetual contracts. Once the price started to fall, these leveraged positions automatically hit their liquidation levels. As exchanges began closing those positions, prices fell even further, triggering more forced liquidations in what became a feedback loop.
At the same time, the open interest of XRP futures fell by around $150 million. This sharp decline confirmed that a large number of traders were being forced out of their positions. The unwinding of leverage made the move more violent and added to the volatility.
The crash was not caused by one single factor. Instead, several things happened at once.
The global crypto market experienced a macro shock, as risk assets dropped due to geopolitical or economic news that shook investor confidence. When such a large event hits the market, leveraged assets like XRP tend to move more sharply than others.
XRP derivatives markets are heavily leveraged. Traders often use borrowed funds to multiply their exposure, sometimes as much as 20 to 100 times. When prices move against them, these positions get automatically liquidated. During the crash, this chain reaction caused exchanges to sell off XRP in huge amounts within seconds.
Large XRP holders began moving and selling large quantities of tokens. When whales sell into a thin market with little buying support, it accelerates the decline. Analysts observed several big XRP transfers to exchanges during the same time as the crash, suggesting that some large holders might have taken profits or tried to exit before prices fell further.
Technical market factors played a role. XRP had strong technical support levels near the $3 mark, where many traders had placed stop-loss orders. Once prices broke below those levels, automated sell orders were triggered, increasing downward momentum. The result was a rapid collapse followed by a mechanical recovery once the forced selling ended.
Also Read: XRP Price Decline: Analyzing Ripple's Current Challenges
Once the liquidations ceased, XRP price recovered promptly. Within hours, the token had climbed back over $2.30, recouping some of those losses. The bounce indicated that, although forced selling had driven a panic, some buyers saw the decline as an opportunity to buy at a lower price.
Even with the partial rebound, market volatility is still elevated. The open interest slump indicates that speculator leverage has largely been purged from the system. This can be a healthy reset, as it lessens the chance of another liquidation cascade. This also implies that the market may continue to be tentative in the near term.
Sentiment in the XRP community and from analysts turned mixed post-event. Others called it a “healthy correction” that purged excess leverage, but some cautioned that further volatility could keep prices unstable for weeks. The crash reminded us that leveraged trading is extremely risky, especially in a market as volatile as cryptocurrency.
Market watchers are now focusing on several indicators to understand what could happen next.
If open interest begins to rise again quickly, it could mean that traders are rebuilding leveraged positions. This might set the stage for another round of volatility if the market turns against them. A more constant rise would indicate healthier trading behavior and extensive stability.
If large XRP wallets continue to send tokens to exchanges, it could indicate that big holders are preparing to sell more, putting pressure on prices. On the other hand, if whale wallets start accumulating XRP again, it would suggest renewed confidence and a possible price recovery.
The same global factors that triggered the broader $19 billion liquidation across the crypto market could return. Any major shifts in interest rates, government policies, or geopolitical tensions can still have a strong impact on digital assets.
The recent XRP wipeout shows how quickly sentiment can shift in cryptocurrency markets. The crash was the result of a combination of factors: excessive leverage, the sale of a large number of coins by a single trader all at once, and a global market shock, all taking place within a very short period of time.
The total amounts of the losses reported by different sources varied a lot, ranging from $17.73 million for liquidated long positions to hundreds of millions in losses across all traders. The differences lie in the data calculation methods used by exchanges and analytical companies, with some focusing on specific exchanges while others consider the entire market.
The recovery that took place afterward is a sign that the market realized support after the forced selling was over, but volatility remains a worrying factor. An XRP price of $2.40 indicates that the market's trust is still present, but traders are still cautious.
This incident is also a big achievement for the whole crypto community. High leverage is a double-edged sword, giving higher profits but also resulting in huge losses when the market suddenly changes direction. Such occurrences highlight the need for risk management, proper margin settings, and an understanding of the entire market situation.
Also Read: XRP V-Shaped Rally Points to Big Breakout: What’s Coming Next?
The largest XRP long wipeout since September was not an isolated event. It was the result of a market-wide liquidation wave combined with XRP-specific selling pressure, excessive leverage, and technical breakdowns. Prices dropped sharply, positions worth tens of millions of dollars were erased, and overall trader losses reached hundreds of millions of dollars.
The selloff forced the market to reset, washing out weak positions and reducing leverage levels. While XRP managed to recover to around $2.36–$2.47, it remains sensitive to any new shocks in the crypto market.
The coming weeks will show whether XRP can maintain stability or if volatility returns as traders rebuild their positions. For now, the event stands as a reminder that in cryptocurrency markets, rapid gains often come with the risk of equally rapid collapses.
1. What caused the recent XRP long wipeout?
The XRP long wipeout was triggered by a mix of heavy leverage, whale selling, and a broader Crypto Market crash that forced millions in liquidations.
2. How much value was lost during the XRP liquidation?
Over $17.73 million worth of XRP long positions were liquidated, with total trader losses across the Cryptocurrency market exceeding $19 billion.
3. How did the XRP Price react after the crash?
The XRP Price dropped by more than 40%, hitting a low near $1.64, before rebounding to trade above $2.30 within hours.
4. What role did leverage play in the XRP crash?
High leverage magnified the selloff. When prices fell, heavily leveraged positions were automatically closed, creating a domino effect of forced selling.
5. What does this event mean for the future of XRP and Digital Assets?
The wipeout reset excessive leverage in the market, signaling short-term caution but also setting the stage for a more stable recovery across Digital Assets.
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