Ripple’s XRP shocked the market today, crashing nearly 42% to a low of $1.53 before bouncing back slightly to $2.3. The sudden fall wiped out $700 million in liquidation and left traders stunned across exchanges.
Now everyone’s asking the same question — why did XRP crash so hard, and what triggered the panic?
The sudden drop didn’t come out of nowhere. Data shows that large XRP holders were behind much of the selling pressure. These whales reportedly unloaded between $40 million and $50 million worth of XRP daily, totaling more than $1.5 billion in less than a month.
This constant wave of selling flooded exchanges and caused a chain reaction of liquidations, as stop-loss orders triggered one after another.
In just 24 hours, over $709 million worth of XRP futures were wiped out. Long positions took the hardest hit, accounting for roughly $616 million of that total, while short positions made up another $92 million.
Analysts say this was the largest liquidation event in XRP’s recent history, a reminder of how quickly leveraged trades can unravel during sudden sell-offs.
The timing of the XRP crash couldn’t have been worse. It happened right after U.S. President Donald Trump announced a 100% tariff on Chinese imports, a surprise move that shocked global investors.
As fear spread, the total crypto market lost over $400 billion in value, dropping to about $3.74 trillion. Bitcoin also fell sharply to nearly $105,000 before recovering slightly.
This market-wide panic added even more pressure on XRP, pushing its price down further.
Now, all attention is on whether XRP can hold above the $2.30 support level. The Relative Strength Index (RSI) currently sits at 29, showing oversold conditions, hinting at a possible short-term rebound.
If buyers defend the $2.30 zone and push prices back above $2.80, XRP could regain its bullish footing.
But if support fails, a slide toward $2.00 & further $1.56 remains on the table.
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