XRP Crashes 8% as Derivatives-Driven Selloff Hits Crypto Market

Ripple's XRP token experienced a sharp decline in value by about 8% over a 24-hour period, plummeting to $1.50 on Thursday. This significant drop was largely driven by a derivatives-led selloff, with traders attributing the decrease to the liquidation of over-leveraged long positions.

According to crypto analysts, the forced selling in a market where top traders were heavily net-long created a feedback loop that accelerated the drop. The token's downward price move was exacerbated by leverage, not just organic selling, with top crypto analysts emphasizing that high leverage increases volatility during XRP pullbacks.

The entire cryptocurrency market cap fell 2.82% due to elevated U.S. Treasury yields and expectations of further Federal Reserve rate hikes. XRP's drop was compounded by a technical rejection at its recent swing high of $1.65, a key resistance level.