XRP Plunges 14% as Market Fear Triggers Heavy Liquidations
SAMUEL MOBOLAJI
Ripple’s XRP tumbled sharply on Thursday, losing about 14 per cent in 24 hours to settle at $1.35, as extreme fear gripped the crypto market and triggered widespread sell pressure. The decline underscores XRP’s vulnerability as a high-beta altcoin, amplifying losses in a market-wide liquidation spiral.
The broader crypto market also fell steeply, with total market capitalisation sliding to $2.37 trillion, down 6.45 per cent. Bitcoin dropped 8 per cent, closing near $41,000, while leveraged unwinds and derivatives squeezes deepened the downturn.
Global perpetuals open interest surged 14.26 per cent in the same period, signalling high leverage entering the sell-off. BTC liquidations alone reached $378.82 million, cascading into altcoins like XRP.
XRP’s underperformance was notable, falling nearly twice as much as Bitcoin (-7.02%). Analysts say the coin remains at a critical juncture: holding above $1.30 could allow a relief bounce toward $1.50, but a break below risks a slide to $1.20.
Despite the bearish trend, oversold conditions may fuel a short-term rebound if broader market pressure eases. Investors are watching for stabilization in global open interest and funding rates turning positive, which could slow selling momentum.
The selloff highlights the fragility of sentiment-driven crypto markets, where high leverage magnifies volatility. For XRP, reclaiming the $1.50 pivot point will be crucial to restoring investor confidence; failure to do so keeps the path of least resistance firmly downward.
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