XRP Plunges 17% in Steepest One-Day Drop Since 2025 as $46M in Leveraged Longs Get Wiped

XRP just took a brutal haircut—and leveraged traders got scalped.

The digital asset shed 17% in a single session, marking its steepest one-day decline since 2025. The move vaporized roughly $46 million worth of leveraged long positions in a classic crypto margin call massacre.

Liquidation Cascade

When prices slide this fast, over-leveraged bulls don't just lose—they get obliterated. Automated systems trigger liquidations, selling off collateral to cover debts and accelerating the downward spiral. It's a self-feeding cycle that turns a correction into a bloodbath.

Market Mechanics at Work

High leverage amplifies gains on the way up—and magnifies pain on the way down. The $46 million figure represents real money wiped from trader accounts, not just paper losses. For context, that's enough capital to fund a small fintech startup or buy a decent yacht. Poof—gone in a market hiccup.

Welcome to crypto, where 'risk management' is something your broker mentions right before your account balance resembles a phone number from 1950.

Looking Ahead

Sharp corrections often create buying opportunities for patient investors, but they also serve as brutal reminders: in markets this volatile, excessive leverage is just a fancy way to donate your capital to smarter traders.

Leveraged Liquidations Amplified the Selloff Across Derivatives Markets

Data from CoinGlass showed roughly $46 million in XRP derivatives liquidations over 24 hours, with bullish bets accounting for about $43 million of that figure.

Prices bled slowly through most of Thursday before a sharp drop late in the session triggered a cascade of stop-loss orders and forced closings.

The break below the $1.44 support zone flipped that area into overhead resistance, leaving $1.00 as the next widely watched psychological level.

Across the broader market, traders saw approximately $1.42 billion in total crypto liquidations on Thursday, with long positions accounting for $1.24 billion.

XRP ETF Inflows Hold Up Despite the Price Collapse

Despite the steep decline, institutional flows into XRP exchange-traded funds have remained positive.

Since launching in November 2025, XRP spot ETFs have posted inflows on all but four trading days, according to SoSoValue data. Looking at this week’s performance, inflows totaled roughly $24 million, bringing cumulative net inflows past $1.2 billion.

That resilience stands in sharp contrast to bitcoin ETFs, which recorded approximately $545 million in outflows on Wednesday alone.

Ripple’s Regulatory Wins Failed to Cushion the Drop

The selloff came during an otherwise active stretch for Ripple. Earlier this week, Ripple announced it had received full approval of an Electronic Money Institution license from Luxembourg’s Commission de Surveillance du Secteur Financier, enabling it to scale regulated payment services across the EU.

The Luxembourg approval followed a separate EMI license from the UK’s Financial Conduct Authority in January, bringing Ripple’s global license count past 75.

None of these developments cushioned XRP against the broader risk-off move. This price development underscores that the token’s valuation remains driven primarily by positioning and momentum rather than adoption narratives.