XRP Liquidation Tsunami: $2.15 Plunge Triggers 10x Leverage Carnage – Dead Cat Bounce or Bull Trap?

XRP just got rug-pulled by its own traders—a 1000% surge in liquidations hits as the price craters to $2.15. Blood in the water? Or just another ’healthy correction’ (as bagholders insist).

Technical carnage: The drop vaporized over-leveraged longs faster than a DeFi exploit. Now, the million-XRP question: Is this the flushout before a rally, or the start of a deeper dive?

Watch the $2.00 level like a hawk. Break that, and even the most delusional moonboys might finally admit this isn’t 2017. Holders clinging to ’Ripple partnerships’ like life rafts? Cue the Wall Street sharks circling.

A brutal flush reveals market overexposure

On the 30th of April, XRP saw a staggering $13.9 million in long liquidations versus just $1.49 million in shorts, according to CoinGlass — an eye-watering 1000% imbalance.

This extreme skew is indicative of a dangerously overleveraged long bias.

Source: CoinGlass

The resulting cascade of forced sell-offs triggered a sharp price drop to $2.15, clearly visible in the liquidation chart.

Such spirals occur when stop losses and margin calls compound one another, accelerating downside volatility and exposing the fragility of sentiment-heavy rallies.

XRP in a tug of war

Source: Coinglass

XRP witnessed a sharp 4% drop in Futures Open Interest, signaling a flush-out of Leveraged positions. This suggests traders may be reassessing risk or simply exiting amid uncertainty.

Yet, the token quickly recovered from a low of $2.15 to reclaim the $2.20 level — a key psychological threshold that continues to act as a magnet for price action.

Source: TradingView

This bounce has split trader sentiment. While some argue that weak hands have been flushed, indicating potential for upside, others warn of more pain ahead, citing shaky on-chain volume and wavering momentum.

With the RSI hovering near 55 and OBV failing to breakout, the market remains on edge; watchful of whether conviction or caution takes the lead.

Bullish fundamentals defy the dip

Despite the sharp price correction, XRP’s broader fundamentals remain overwhelmingly bullish.

The SEC’s decision to pause its appeal against Ripple has reignited hope for future U.S. banking partnerships, a move that could significantly boost institutional confidence.

Adding to the momentum, Ripple’s RLUSD stablecoin has already surpassed a $300 million market cap — an impressive debut.

Meanwhile, ETF Optimism is growing, with over ten XRP spot applications filed and the approval odds at 80% or higher.

Ripple’s acquisition of Hidden Road, a broker handling over $10 billion in daily volume, further signals growing institutional integration.

While price action wavers, these developments offer a solid long-term foundation that many believe the market will soon begin to price in.