XRP Rally Ignited One Year Ago - $700 Million Evaporated From Traders In Seconds

The digital asset space witnessed one of its most brutal wealth transfers as XRP's explosive rally celebration turned into a mass liquidation event.

The Flash Crash Phenomenon

Exactly twelve months back, XRP's parabolic surge triggered a cascade of leveraged positions getting obliterated. Margin calls hit like dominoes as the token's violent price action caught overconfident traders off guard.

Liquidation Bloodbath

Seven hundred million dollars vanished from trading accounts faster than you could refresh your portfolio. Long positions got decimated while short sellers barely had time to react before the market reversed again.

The Aftermath

Exchange order books turned into digital graveyards filled with stop-loss orders that never stood a chance. The sheer velocity of the move exposed the fragile foundation of over-leveraged crypto speculation.

Another reminder that in crypto markets, yesterday's genius often becomes today's liquidation statistic - the only consistent winners being the exchanges collecting fees from both sides of the carnage.

Is XRP Bullish Momentum Exhausted?

Data from Coinglass shows that the sudden price decline triggered over $700 million in liquidations from traders speculating on XRP’s price performance.

Notably, more than $600 million in long positions were liquidated as traders betting on a price rebound were caught off guard by the sharp downturn.

The sell-off also saw XRP’s open interest drop from over $8 billion to around $5 billion, signaling a rapid unwinding of Leveraged positions.

Despite this, derivatives activity surged, with XRP’s trading volume in futures and options exceeding $23 billion — its highest level since July. This spike suggests that traders rushed to hedge their positions or capitalize on short-term volatility.

The market slump coincided with renewed macroeconomic tension following President Donald Trump’s announcement of a 100% tariff on Chinese goods. The MOVE rattled risk assets, including cryptocurrencies, and fueled a wave of selling pressure.

Yet XRP’s decline also reflects internal market dynamics of the token.

Glassnode data indicates that the token’s bullish momentum has waned since late 2024 as investors who accumulated below $1 took profits during rallies above $2 and $3.

Notably, the two profit-taking waves of December 2024 and July 2025 aligned with the asset’s price peaks and delivered over 300% gains for early holders.

Now, with those gains realized and broader market sentiment turning risk-averse, XRP appears to have entered a consolidation phase.

However, market analysts have pointed out that new catalysts, like the impending spot ETFs approval, could reignite investor confidence in the digital asset.

In addition, they noted that the continued growth and adoption of Ripple’s blockchain technology and XRP Ledger could also fuel the crypto token’s ascent.