XRP Mass Liquidations: Traders Lose Over $600 Million
Date: 2025-10-13 Author: Oliver Abernathy Categories: CRYPTO PAYMENTS
The XRP price has plummeted by more than 13% in the past 24 hours, falling to $1.53 before recovering slightly to $2.44, according to BeInCrypto. This marks the second time in 2025 that the token's price has fallen below $2. The total crypto market capitalization has decreased by nearly $20 billion during this period.
According to Coinglass, the sharp price movement triggered massive liquidations, totaling over $700 million. The largest losses were incurred by long positions, at over $600 million. Open interest in XRP contracts has fallen from $8 billion to $5 billion, indicating a massive unwinding of leveraged trades and an exit of some traders from the market.
Despite the price decline, activity in the derivatives segment has increased significantly. XRP futures and options trading volumes reached $23 billion, the highest since July. Analysts note that market participants were actively hedging risks or trying to profit from short-term volatility.
XRP's decline coincided with rising geopolitical tensions. Following President Donald Trump's announcement of 100% tariffs on Chinese goods, investors began dumping risky assets, including cryptocurrencies, en masse. This exacerbated the sell-off and put additional pressure on the market.
Besides external factors, XRP's performance is also explained by internal market processes. According to Glassnode, the token's bullish momentum began to wane as early as late 2024. Investors who bought XRP at prices below $1 began taking profits when the price exceeded $2 and $3. Two major sales waves—in December 2024 and July 2025—coincided with the token's peak values and provided early market participants with returns of over 300%.
XRP is currently in a consolidation phase. The market has cooled, and investor interest has shifted to monitoring the macroeconomic situation. However, analysts believe the situation could change if new incentives emerge. Among them is the possible approval of spot ETFs, which could restore investor confidence and revive trading activity.
Ripple's efforts to develop its blockchain infrastructure and the XRP Ledger ecosystem could provide additional support in the long term. Experts predict that if these initiatives gain further momentum, the token could regain its position and once again attract the attention of institutional players.
