XRP Liquidation Imbalance Hits 10,535%, Price Plummets to $1.38

XRP experienced a rare liquidation imbalance of 10,535% during the Labor Day period, when liquidity is typically low.

The price briefly fell to $1.38 due to leveraged long liquidations, but has since fluctuated around $1.40.

This correction does not imply a fundamental shift in XRP's value; recent data show a decline in open interest and leverage levels, indicating that concentrated positions are being cleared out.

The market is undergoing a repricing process, with a reduction in leverage potentially leading to a healthier price trajectory.