XRP Crashes to $1.43 as $20M in Long Positions Get Liquidated

XRP's meteoric rise has come to an abrupt halt as the cryptocurrency faces its strongest derivatives selling pressure of the year, according to CryptoQuant analyst Darkfost. The asset dropped to $1.43 after a nearly 70% surge in two weeks, with the price climbing to a January high of around $1.70.

The increase in leverage has now become a problem for XRP, as traders with large long positions were forced to close their trades, adding more selling pressure and triggering a long squeeze. Around $20 million in positions were liquidated as XRP moved back toward $1.43.

Despite the heavy derivatives selling, spot demand for XRP remains strong, with U.S. spot XRP ETFs recording nine straight days of net inflows through August 26, adding another $28.14 million during the latest session.