$XRP

Why Is XRP Down Today? Analysis of the $1 Billion Liquidation Event

1. Massive Liquidations Triggered Forced Selling

On August 14, 2025, XRP suffered a sharp decline—dropping from approximately $3.3 to below $3—as the crypto market was swept by a large-scale $1 billion liquidation event on major platforms like Binance and Bybit. Coinglass data shows:

Over $883 million in leveraged long positions were closed.

About $176 million in leveraged short positions were also liquidated.

Specifically for XRP, over $56 million in long positions were forcefully closed.

These cascading unwinds triggered a wave of automated selling, amplifying XRP’s plunge.

2. Market Sentiment Shift and Profit-Taking

Earlier in July, XRP surged over 60%, climbing from around $2.00 to above $3.50. This sharp rise sparked widespread profit-taking.

As traders rotated capital back to safer assets like Bitcoin or stablecoins, Bitcoin’s dip (~1%) shook confidence, especially among altcoin holders.

3. Whale Sell-Offs Intensify Downward Pressure

Whales and large holders have been offloading XRP aggressively:

Since mid-July, approximately $6 billion worth of XRP has been sold—creating sustained downward pressure.

Notably, Ripple co-founder Chris Larsen alone sold $26 million worth, signaling that even insiders are wary.

4. Broader Market Correction — More Than a Flash Crash

XRP’s fall followed a broader market correction, with Bitcoin and Ethereum also under pressure due to profit-taking and fading bullish momentum.

This isn’t seen as the end of the crypto rally. Analysts remain optimistic that health corrections during uptrends (as seen in mid-2025) are relatively benign.

Summary Table

Factor Impact on XRP

$1B+ Market Liquidations Triggered forced unwinds, especially of leveraged longs

Profit-Taking Post-rally selling eroded momentum

Whale Offloading Large holders dumping XRP added sustained selling pressure

Market Correction Altcoin sell-off followed Bitcoin’s minor retracement