$XRP Nosedives — Soft CPI Data Sparks Wave of Liquidations
XRP tumbled below the $2.20 mark on Friday, as investor anxiety mounted over U.S. tariff uncertainty and a surprisingly soft inflation print. The April U.S. Core PCE Price Index, a key inflation gauge, came in at 2.5%—meeting expectations but down from 2.7% in March—marking its lowest level since March 2021. While this suggests easing inflation, it did little to restore market confidence. Instead, the news triggered a wave of volatility across the crypto market, with XRP particularly hard hit.
Trading around $2.17, XRP posted notable downside risks following the U.S. federal appeals court’s decision to delay an order blocking former President Donald Trump’s tariffs. The ruling determined the President had exceeded his constitutional authority, reinforcing Congress’s control over trade policy. This legal development added to global market jitters and sent risk assets into retreat.
The sharp decline in XRP triggered massive liquidations, shaking out weaker hands. Over the past 24 hours, more than $30 million was wiped out in leveraged positions—nearly all from long traders, who accounted for $29.75 million of the total losses. Short positions saw only $384,000 in liquidations. Meanwhile, XRP derivatives saw a 40% spike in trading volume, rising to $6.3 million, and open interest in options surged 10% to $4.2 billion, pointing to mounting speculative activity and an impending period of heightened volatility.
Despite this increased interest, the decline in open interest—coupled with rising volume and liquidations—signals mounting fear among traders. This combination typically precedes a wave of deleveraging, as markets correct and reduce exposure in a bearish environment.
As XRP drifts lower from its recent peak of $2.65, investors should brace for continued turbulence over the weekend, with key macroeconomic and regulatory developments poised to shape short-term momentum.