XRP Price Crash Deepens As Losses Cross $42,000,000

The XRP price continues to drop even after a small relief earlier in the week, and this has deepened losses for investors. Mainly, the losses have been suffered by leveraged longs, once again showing how risky these positions can be. CoinGlass data shows staggering levels of losses for the cryptocurrency, which is following Bitcoin’s downward trajectory after the leading digital asset fell below its $60,000 support.

XRP Price Decline Triggers Major Leverage Wipeout

XRP price weakness deepened on Thursday as more than $42 million in leveraged positions were wiped out in 24 hours, a move that shows how crowded bullish bets had become before the latest drop. The liquidation hit came as XRP traded around the $1.05 area, extending a broader crypto pullback that has kept traders on edge.

Coinglass data shows long positions accounted for 96% of the losses, meaning the damage was concentrated among traders who were positioned for a rebound rather than a breakdown. That aligns with the website’s market data showing a sharp unwinding in XRP derivatives activity and a broader risk-off mood across digital assets.

The most immediate takeaway is that XRP price action has been driven by forced selling, not just investors dumping their spot holdings for profit-taking. The XRP page shows the current price sitting near $1.07 at the time of writing, with roughly $2.8 billion in 24-hour futures volume and more than $2.5 billion in open interest. So despite the more than $42 million flush, there is still a large amount of leverage for a market trading close to its yearly lows. 

That kind of imbalance typically appears when traders crowd in the same direction and get caught when the price moves against them. In this case, there was a long squeeze, which often accelerates downside moves because exchanges sell into weakness once margin thresholds are breached, and over-leveraged bets were hit the hardest.

The XRP price drop is not just being propelled by developments within itself, but is instead following Bitcoin’s own retreat. Naturally, altcoins have suffered worse declines compared to Bitcoin, and since XRP has often behaved like a high-beta version of the market during stress periods, it suffered even worse. 

Now, the level to watch is $1, which is a level that has acted as major support for the XRP price during this cycle. If this support breaks, then it could signal that an even deeper correction could be coming for the altcoin.

Can Ripple’s Wins Change The Direction?

While the XRP price has struggled, its parent company, Ripple, has continued on its journey to become a global payments company. In a June 23 statement, Ripple revealed that it has received approval from the  Luxembourg government to enable regulated cryptoasset services across all 30 EEA countries. This was a preliminary approval for a MiCA CASP license, which would expand its regulated payments footprint across the European Economic Area if final conditions are met.

Earlier in June, the crypto firm announced that it had expanded the usage of its RLUSD stablecoin into the Turkish market. This would allow institutions to actually use the dollar-pegged stablecoin in Turkey, integrating through local crypto platforms Bitexen, BitLira, and Bitlo. This move allows Ripple to enter the billion-dollar Turkish crypto market, which reportedly processes $200 billion in transactions every year.

Despite these developments, the XRP price has not followed the same upward trajectory. CoinMarketCap data shows that the altcoin’s price is down more than 22% in one month, and has lost over 50% of its value in the last year. In the near term, the XRP price remains vulnerable to more volatility as long as leverage stays elevated and Bitcoin remains weak. However, if the token can reclaim support and spot demand rises, then the latest liquidation wave could end up being more of a reset rather than the start of a deeper breakdown.