XRP Bulls Face $2.16B Liquidation Risk as Institutional Demand Remains Weak
XRP bulls are facing a significant risk of liquidation as $2.16 billion in fresh long positions weighs on the market, causing pressure near the critical $1 level.
According to TradingView data, XRP broke below the crucial $1 level at the beginning of the week, increasing the strain on an already crowded market with leveraged bullish positions.
The token remains far from recovering its July gains, and Ethereum has gained 1.7% in August, while XRP ETFs have attracted just over $3 million in net inflows this month, indicating weaker institutional demand for XRP compared to Ethereum.
Analysts point out that the near-term risk is clear: if XRP cannot recover $1, forced liquidations could amplify losses across heavily leveraged long positions, with $0.98 emerging as the next downside level.