XRP Price Plunges as Derivatives-Driven Pullback Wipes Out $20 Million in Long Positions

XRP has seen its price drop to $1.42 after a sharp derivatives-driven pullback, wiping out over $20 million in long positions.

The token's recent rally, which saw XRP rise by nearly 70% over two weeks, drew heavy leveraged positioning that ultimately led to the unwind of these positions.

Despite this, spot ETF inflows for XRP continue to strengthen, with a seven-month high of $28.14 million seen on August 26.

The total fund inflows remain near $1.62 billion, indicating steady institutional appetite for the token.

The key support zone for XRP is now at $1.40, and if this level is defended, it could lead to a retest of $1.60-$1.70. However, a break below $1.40 risks accelerating selling towards lower levels.