XRP has plummeted to its lowest mark in half a year amidst a major sell-off in the cryptocurrency market, erasing nearly $20 billion in just a day.
As per data from BeInCrypto, the asset fell more than 13% to a low of $1.53 before bouncing back a bit to $2.44 as of the latest update. This represents the second occasion in 2025 where XRP has dipped below the $2 mark.
Data compiled by Coinglass reveals that this abrupt price drop triggered more than $700 million in liquidations among traders who speculated on XRP’s price trends.
Significantly, over $600 million in long positions were liquidated, catching off guard those who were anticipating a price recovery.
The sell-off also caused XRP’s open interest to shrink from more than $8 billion down to about $5 billion, indicating a swift unwinding of leveraged positions.
Despite these challenges, derivatives activity saw an upsurge, with XRP’s trading volume in futures and options surpassing $23 billion — the highest since July. This surge points to traders’ efforts to hedge their positions or take advantage of short-term fluctuations.
The downturn in the market coincided with renewed economic tensions following President Donald Trump’s announcement of a 100% tariff on Chinese imports. This development unsettled risk assets, including cryptocurrencies, leading to extensive selling activity.
Moreover, XRP’s decline also mirrors internal dynamics within the market.
According to Glassnode data, the bullish momentum for the token has diminished since late last year as investors who bought in below $1 took profits during rallies that lifted prices above $2 and $3.
The notable profit-taking phases in December 2024 and July 2025 coincided with peak prices for the asset, yielding over 300% gains for early investors.
Currently, with those profits realized and general market sentiment shifting to risk-averse, XRP seems to have entered a period of consolidation.
However, market analysts have highlighted that emerging catalysts, such as the potential approval of spot ETFs, may rekindle investor enthusiasm for the digital asset.
Additionally, they pointed out that the ongoing growth and adoption of Ripple’s blockchain technology and the XRP Ledger could further propel the token’s value.
Read the original story XRP Rally Started 1 Year Ago – And Traders Lost $700 Million In a Flash by Oluwapelumi Adejumo at beincrypto.com
