XRP Liquidations Hit $18.8M Amid Short-Seller Dominance

XRP traders recently experienced heightened market turbulence as liquidations soared to a staggering $18.8 million in a 24-hour span, largely fueled by increasing short-seller activity on Binance. This sharp surge in liquidations highlights growing uncertainty in the XRP market amid regulatory developments and volatile price behavior.

The cryptocurrency market is known for its swift movements, and XRP proved no different as leveraged positions faced mounting pressure. According to data from Coinglass, the liquidations were nearly split between bearish and bullish traders, with $9.8 million lost by short sellers and $9.01 million by those on the long side. This balance indicates traders were equally divided in their expectations for XRP’s direction, intensifying the sudden market correction.

Among the major exchanges, Bybit emerged with the highest XRP liquidations, totaling $7.28 million. This figure consisted of $2.58 million from short positions and $4.7 million from long ones. Meanwhile, Binance followed closely with $7.08 million in total liquidations, where the majority—73.5%—came from short positions. This suggests a rapid price movement triggered a short squeeze, forcing bearish traders to close out positions at a loss.

In contrast, the nature of losses shifted on the OKX platform, which recorded $2.8 million in liquidations, primarily from long positions. This discrepancy illustrates how different exchanges experienced different dominant sentiments within that same volatile timeframe.

Smaller players such as CoinEx, Gate.io, and HTX also saw meaningful liquidations, each surpassing $100,000. This reinforces the widespread impact of XRP’s price volatility, which reached various corners of the market—not only the top-tier trading platforms. Even specialized derivatives venues like Bitfinex and BitMEX weren’t spared, logging multiple forced closures of leveraged positions.

The liquidation trend points to a high-stakes tug-of-war between traders with opposing expectations. However, the skew toward short-position liquidations on Binance highlights that a strong upward price movement likely caught bearish investors off guard. During such price rallies, short sellers are typically forced to buy back into the market, increasing overall demand and causing prices to climb even further in the short run.

This scenario unfolded at a time when both investors and regulators were closely tracking movements in XRP. The liquidation wave coincides with heightened scrutiny over XRP’s legal and institutional backdrop. As recently reported, Ripple Labs and the SEC reached a key settlement in their ongoing legal battle, a development that may have influenced market sentiment and triggered abrupt trading decisions.

Although liquidation amounts were nearly equal on both sides of the trading spectrum, the sharp tilt toward short liquidations on a major exchange like Binance reflects how even slight surges in XRP can result in dramatic trading consequences. Ultimately, the $18.8 million in forced exits is a clear indication that XRP’s market remains as turbulent as ever, and traders are advised to navigate with caution amid ongoing developments.

Related: Expert Advice: Sell XRP If You’re Confused

As XRP continues to play a prominent role in the crypto financial landscape, such market movements reinforce the importance of risk management strategies and a keen understanding of external forces—regulatory shifts, sentiment swings, or otherwise—that can significantly impact leveraged trading outcomes in the current environment.