XRP Price Drops 4.3% Amid Overheated Derivatives and Long Liquidations
XRP's price dropped by approximately 4.3% over the last 24 hours due to a leveraged cooldown and profit taking following a sharp rally.
The rally, which saw XRP's price move roughly 44-46% over seven days from $1.00 in mid-August to intraday highs near $1.66-$1.69, was likely overextended and hit key resistance at the $1.50-$1.55 area.
The derivatives market around XRP was also overheated, with an estimated leverage ratio of 0.21 on Binance, its highest level since January. This led to heavy long liquidations, totaling about $18.9 million in 24 hours, which amplified the price drop.
The broader crypto market only dipped by 0.5%, while ETF and institutional flows into XRP remained positive, with U.S. spot XRP ETFs recording net inflows of around $23.9 million on August 25.