XRP Plummets 7% Amid $437M Sell-Off—$1B Crypto Liquidation Storm Rocks Market
Crypto markets got a brutal wake-up call as XRP led the bloodbath—tumbling 7% in a fire-sale frenzy. Nearly half a billion in sell orders triggered domino liquidations across the board. Here’s how the carnage unfolded.
The Ripple Effect: XRP’s nosedive wasn’t just another dip—it was a full-blown liquidity crisis. Whale-sized dumps flooded the order books, vaporizing leverage positions like a DeFi protocol with no admin keys.
Liquidation Avalanche: When the dust settled, $1B worth of long positions got rekt. Traders learned the hard way that ‘bull market’ doesn’t mean ‘free money’—especially when exchanges start auto-unwinding your 100x leverage like a reverse ATM.
Meanwhile, institutional analysts are still calling this a ‘healthy correction.’ Because nothing says ‘healthy’ like watching your portfolio do a swan dive into a shallow pool of USDT.
News Background
- Market-wide liquidations exceeded $1 billion, amplifying downside pressure across major cryptocurrencies.
- XRP’s selloff coincided with a midday capitulation event, with volume reaching 436.98 million units — one of the largest single-hour prints this quarter.
- Ripple’s CTO reiterated the XRP Ledger’s readiness for global financial infrastructure use, offering fundamental support amid technical weakness.
- Broader crypto market declines aligned with profit-taking in U.S. equities, shifting risk sentiment to the downside.
Price Action Summary
- XRP dropped from $3.34 to $3.10 in the 24 hours from Aug. 14 03:00 to Aug. 15 02:00 (-7.19%).
- Session range spanned $3.34 to $3.05, a $0.29 move representing 8.69% volatility.
- The steepest decline occurred at 12:00, with price falling from $3.22 to $3.09 on heavy volume.
- Following the drop, XRP traded in a narrow $3.05–$3.13 band, signaling reduced sell-side momentum.
- Late-session trading saw price recover from $3.09 to $3.10, breaking back above immediate resistance.
Technical Analysis
- Support confirmed between $3.05–$3.09 on multiple retests during high-volume selling.
- Resistance now sits at $3.13, with secondary resistance at $3.20.
- Declining volume after the midday spike suggests liquidation exhaustion.
- Final 60 minutes saw two notable volume surges — 4.53M and 3.76M — confirming institutional interest at support.
- Recovery above $3.10 in low-liquidity conditions may indicate early-stage re-accumulation.
What Traders Are Watching
- Follow-through buying above $3.13 to confirm short-term reversal.
- Large-holder wallet activity for signs of renewed accumulation.
- Whether $3.05 holds during the next wave of market-wide volatility.
- Funding rate shifts in XRP derivatives markets that could signal leverage re-entry.
- Broader correlation with equity markets as Fed rate cut bets continue to drive risk sentiment.
