XRP Sees 4,628% Liquidation Spike Amid Bearish Downturn

XRP has recently witnessed an explosive 4,628% surge in liquidation imbalance, signaling rising volatility in its market behavior. This drastic move has come amid a broader bearish reset for XRP, reflecting turbulence following a significant breakout above a vital price level.

In the past hour alone, nearly $159,820 worth of long XRP positions were liquidated, catching bullish traders off guard. These investors had placed high hopes on XRP’s price extending its previous momentum. However, the sudden downturn has led to swift market corrections, causing ripple effects throughout the XRP trading ecosystem.

Following its successful breakout past the psychological $3 barrier, XRP briefly reached $3.02 before facing selling pressure. This prompted a sharp drop, pulling the token’s value down to $2.81—a result of both profit-taking and new bearish sentiment in the market. As of the latest update, XRP was trading at $2.83, reflecting a 3.53% decline in 24 hours. Meanwhile, trading volume climbed by 20.62%, reaching $11.3 billion, highlighting continued investor interest despite recent volatility.

Analysts have pointed to XRP’s Relative Strength Index (RSI), which now stands at 83.56, placing the asset firmly in overbought territory. This technical indicator suggests that XRP may be due for further correction if buyers continue taking profits or if market sentiment temporarily shifts to a more conservative stance.

Notably, the liquidation frenzy hasn’t spared bearish traders either. Short sellers also faced losses, with a reported $3,380 worth of short positions liquidated in the same hour. This points to heightened uncertainty across both sides of the market as XRP wrestles with directional clarity.

Adding to the speculative environment is buzz surrounding a potential XRP-focused exchange-traded fund. Market chatter suggests that ProShares may soon launch such an ETF, with legal expert John Deaton hinting at a potential announcement by July 18. While no official confirmation has surfaced, ETF-related speculation continues to play a role in fueling XRP’s volatile price movements and investor activity.

The decision by many holders to secure profits right after XRP passed $3 also contributed to the rapid shift in momentum. This strategic sell-off triggered a cascading effect on positions, which was exacerbated by how tightly leveraged many of the recent trades were.

In another noteworthy development, a massive whale transaction has caught attention within the XRP community. On-chain data revealed the transfer of over 497.5 million XRP between two anonymous wallets—a move that continues to raise questions about potential market manipulation or large-scale restructuring by institutional holders. Such whale activities often mirror upcoming strategic shifts or preemptive responses to anticipated market changes.

XRP’s current condition reflects a market grappling with excitement and caution in equal measure. As bullish narratives like ETF speculation coexist with signs of overextension, traders are likely to maintain heightened alertness. Whether XRP stabilizes after this correction or faces more turbulence ahead will depend heavily on investor sentiment, upcoming news, and broader market patterns.

As XRP navigates this uncertain landscape, traders and holders alike are keeping an eye on price stability, whale activity, and any official word about the rumored ETF—all factors that will shape whether another rally can form, or if the current bearish phase lingers longer than expected.

Related: XRP Price: $12M Max Pain for Bears

CoinGlass provided the liquidation imbalance data discussed in this analysis. Additionally, investors are watching potential announcements, such as from John Deaton, and monitoring significant whale movements tracked via large transfers like this one involving 497.5 million XRP.