The price of XRP, the native token associated with Ripple Labs, slid to approximately $2.05, driven by a wave of leveraged position liquidations and broad market pressure on risk assets.
Liquidation Cascade Drives Near-Term Sell-Off
Data from leading crypto exchanges shows that XRP’s recent downturn was amplified by forced unwinds of over-leveraged positions.
In the last session, an extreme long/short liquidation imbalance occurred near key levels below $2.10, with a disproportionate number of long positions liquidated as prices dipped.
Analysts tracking derivatives data note that this price level has increasingly acted as a liquidity magnet, where clustered stop-losses and margin calls trigger cascading exits.
Once these forced sales accelerate, they can overwhelm support and push prices lower even in the absence of new fundamental catalysts.
Separately, technical indicators signaled weakening momentum: XRP closed below its 50% Fibonacci retracement and 30-day moving average, with the MACD turning negative—a combination that often correlates with short-term bearish sentiment among traders.
Market Structure & Broader Crypto Trends
The liquidation event comes amid wider crypto market rotation into safer large-caps like Bitcoin, after positive regulatory developments failed to sustain fresh buying pressure in altcoins.
Recent macro headlines—including a delay in U.S. crypto legislation—have contributed to broader market hesitation, placing additional pressure on XRP and similar assets.
Although spot XRP ETF inflows remain positive on a weekly basis, interest has slowed significantly compared with peaks seen in late 2025, further limiting immediate bullish catalysts.
Bullish Developments Still in Play
Despite the sell-off, some underlying positive trends persist.
Whale activity has been reported across the crypto ecosystem, with selective accumulation occurring even as price fluctuates.
Institutional infrastructure developments—including preliminary license approvals in Europe and expanded payment integrations—continue to support long-term adoption narratives.
These macro and micro-level developments suggest a bifurcated market: short-term technical weakness driven by leverage unwinding, set against a backdrop of ongoing fundamental progress for XRP.
What Traders Are Watching Next
Market commentators highlight the $2.02–$2.10 zone as a critical pivot; a sustained breakdown below this range could open the door to deeper retracements and attract further algorithmic selling.
Conversely, stabilization above key support may reduce liquidation pressure and build confidence for a rebound.
In the face of heightened volatility, traders and investors are closely monitoring derivatives data, whale positioning, and macro risk sentiment to gauge whether XRP’s price can reclaim bullish footing or continue its short-term corrective phase.
