XRP dropped 3.09% in the last 24 hours to $1.27 early Saturday, a decline that triggered a 2,008% liquidation imbalance as leveraged bullish traders faced forced position closures. CoinGlass data indicates total XRP liquidations reached $7.92 million during this period, with long positions accounting for $7.55 million and short positions for $375,910.
This imbalance reflects a market environment where traders betting on higher prices are being liquidated at a substantially greater rate than those betting on further declines. The price action extends a downward trend that began with a sharp drop on Thursday, marking a third consecutive day of losses for the asset. The continued decline caught traders expecting a rebound unawares, resulting in the forced unwinding of leveraged positions.
Broader Crypto Market Selloff
The pressure on XRP occurred against a backdrop of renewed stress across global markets, which weighed on cryptocurrencies and erased gains recorded earlier in the week. In the last 24 hours, $667.71 million was liquidated across the broader crypto market. Long positions were the primary target of this wider selloff, with $528.30 million in long liquidations reported, indicating a broad retreat from bullish exposure across digital assets.
Network Growth and Price Levels
Despite the price volatility, Santiment reported that XRP Ledger address growth reached a record 8.24 million non-empty wallets. This figure extends a steady climb in network adoption that has continued through months of price fluctuations. Network growth reached 4,772 new wallets in a single day, representing the fifth-largest spike since March. This acceleration in fresh participation strengthens the bullish case if price increases continue to confirm user growth.
Market observers identify $1.40 as the first significant level to watch. A sustained move above this threshold, accompanied by network growth near or above 4,000 daily wallets, would make a return to $1.50 plausible. Conversely, if XRP loses the $1.30 support level while new-wallet creation falls below roughly 3,000, the adoption signal would be less convincing in the short term. XRP’s MVRV ratio sits around 0.92, placing traders in net losses, a condition described as a historically more favorable, lower-risk opportunity zone compared to periods when holders are sitting on large profits.
In related developments, Arf is bringing settlement liquidity to the XRP Ledger. The Swiss-regulated platform is partnering with Ripple to provide RLUSD-powered settlement liquidity to licensed cross-border payment companies operating on the XRP Ledger.
Frequently Asked Questions
What is the current XRP liquidation imbalance?
The liquidation imbalance for XRP is 2,008%, driven by $7.55 million in long liquidations compared to $375,910 in short liquidations.
How many new XRP Ledger wallets were created recently?
The XRP Ledger saw 4,772 new wallets in one day, bringing the total number of non-empty wallets to a record 8.24 million.
