XRP stalls while crypto liquidations soar: Why the token is still lagging after a $423M wipeout
Bitcoin’s explosive move higher briefly lit up the entire crypto market – but XRP once again failed to keep pace, exposing a widening performance gap between the token and other large-cap assets.
In the space of a single hourly candle, Bitcoin jumped close to 10%, dragging the broader market into the green and catching many overleveraged traders on the wrong side of the move. Yet while majors like Ethereum and Solana reacted strongly, XRP’s rally was short-lived and shallow, raising questions about waning momentum and investor conviction.
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Bitcoin ignites the market…
A few hours before press time, Bitcoin printed one of its strongest hourly moves in recent weeks, surging nearly 10% in a rapid breakout. That sharp spike immediately pulled the rest of the crypto complex higher, flipping sentiment from cautious to optimistic within minutes.
Among the leading altcoins, Ethereum delivered the most convincing follow-through, climbing roughly 6.1%. Solana also participated in the move, tacking on about 2.32%. For many traders, it looked like the beginning of a new leg higher led by BTC, with large caps quickly repositioning upward.
The swift move was notable not only for its size, but also for its speed. It was one of the fastest intraday escalations across top digital assets that day, enough to jolt derivatives markets and reset expectations for short-term price action.
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…but the rally quickly cools
After the initial burst of volatility, the exuberance began to fade. Prices pulled back from their intraday highs, and most coins slipped into a narrow consolidation range. Instead of an immediate continuation, the market paused as traders digested the shock move and reassessed their positions.
This lack of follow-through suggests a sizable portion of the rally was driven by rapid liquidations and forced buying, rather than sustained spot demand. For now, the market appears to be waiting for a clearer macro signal or another catalyst before committing to a stronger uptrend.
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Behind the move: large Bitcoin inflows and regulatory tailwinds
One plausible driver of the breakout was a wave of sizeable Bitcoin inflows attributed to major trading desks and at least one large “whale” buyer. Reports of multi‑thousand‑BTC purchases spread quickly, fueling speculation that coordinated institutional or quasi‑institutional buying helped spark the upside break.
At roughly the same time, a key U.S. banking regulator clarified that banks are allowed to carry out so‑called riskless principal crypto trades – acting as intermediaries that momentarily take assets onto their balance sheets while facilitating client orders without taking open market risk.
That clarification, while technical, is meaningful. It removes a layer of uncertainty for banks exploring crypto market-making and could, over time, support deeper liquidity and more robust trading infrastructure. For Bitcoin, any sign of institutional comfort tends to reinforce its narrative as the primary asset at the center of regulated crypto finance.
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All eyes on the Fed: “hawkish cut” risk keeps traders cautious
Another critical backdrop to the move is the upcoming interest-rate decision by the U.S. Federal Reserve. Market participants overwhelmingly expect a rate cut, with probabilities hovering near 90%. However, the cut itself isn’t the only piece that matters – the accompanying message may prove more important.
Analysts increasingly warn that the central bank could deliver what many call a “hawkish cut”: a reduction in rates paired with strict or cautious forward guidance. In other words, the Fed might ease slightly now while signaling that further cuts will be limited or data‑dependent, tempering risk‑asset exuberance.
This prospect has kept macro sentiment somewhat restrained. Crypto traders, especially those operating with leverage, are wary of getting caught offside if the tone from policymakers turns more restrictive than expected. That caution may explain why, after the initial rush, the market has been reluctant to extend the rally aggressively.
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XRP’s muted reaction: a 1–2% move in a sea of volatility
Against this backdrop, Ripple’s XRP delivered a strikingly underwhelming response. While Bitcoin and major altcoins posted robust intraday gains, XRP’s price action looked hesitant.
The token spiked up to around 2.17 dollars during the Bitcoin-led surge but quickly lost steam. Sellers stepped in, and XRP retreated toward roughly 2.08 dollars by the time of writing – leaving it only about 1–2% higher than its pre-spike level.
Relative to Ethereum’s 6.1% rise and Solana’s 2.32% push, XRP’s upside was clearly constrained. For a coin that historically has shown high beta during market-wide moves, this kind of underperformance is difficult to ignore.
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Weak technicals: RSI and OBV signal fragile demand
Momentum indicators reinforce the picture of a struggling asset. On the XRP chart, the Relative Strength Index (RSI) showed only modest buying pressure during the move, failing to push into the kind of overbought territory that typically accompanies strong impulsive rallies.
At the same time, On-Balance Volume (OBV) – a metric that tracks the relationship between price and volume to gauge money flow – has been trending lower, signaling a lack of sustained accumulation. Together, these indicators suggest that buyers have not been stepping in decisively, even when the broader market provided a tailwind.
For traders, this is a red flag. A lagging RSI and declining OBV during a sector-wide bounce often point to underlying distribution or to a market where rallies are being sold rather than bought.
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Derivatives carnage: $423M wiped out in 24 hours
The sudden Bitcoin jump had another dramatic consequence: a huge flush-out in the derivatives markets. In the last 24 hours, more than 423 million dollars’ worth of futures positions across the crypto market were liquidated.
Bitcoin made up the largest chunk of these forced closures, with roughly 166.89 million dollars in BTC contracts wiped out. Ethereum followed, accounting for around 134.77 million dollars in liquidations. These figures underscore just how heavily leveraged the market had become before the move.
Even within the final hour covered by the data, liquidations continued, with positions worth over 2.34 million dollars being closed out abruptly. The single largest liquidation order reached nearly 24 million dollars on a BTC‑USDT contract pair, highlighting how vulnerable big players can be when volatility spikes unexpectedly.
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Shorts take the hit as the market flips higher
As is often the case during surprise upside breaks, short sellers suffered the most. Of the total 423 million dollars liquidated, roughly 310.27 million dollars came from short positions, while long positions accounted for approximately 113.07 million dollars.
That imbalance reflects a market that had skewed too heavily toward bearish bets, with many traders expecting further downside or at least a period of stagnation. When Bitcoin broke higher instead, cascading liquidations of shorts acted as fuel for the rally, forcing them to buy back at increasingly higher prices to cover their positions.
However, while such short squeezes can create sharp price spikes, they do not always establish durable trends. Once the most vulnerable positions are flushed out, the market often stabilizes or retraces, as appears to be happening now.
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Why XRP is an outlier in this environment
So why did XRP fail to capitalize on this squeeze-driven rally in the same way as its peers?
Several structural and sentiment factors may be at play:
1. Weak speculative interest
XRP has, at various points, been less favored by short‑term speculators than other large‑caps. If traders are not heavily leveraged in XRP futures, there is less fuel available for liquidation-driven spikes.
2. Ongoing regulatory overhang
Despite progress in legal clarity in recent years, XRP still carries some historical baggage from prior regulatory disputes. Even if much of the core uncertainty has eased, some institutional and retail traders prefer assets with cleaner narratives.
3. Rotation into other narratives
Market narratives shift quickly. While SOL, ETH, and BTC benefit from themes like DeFi, NFTs, scaling solutions, and digital gold, XRP’s story is more narrowly focused on payments and institutional cross‑border transfer rails. When capital rotates toward hot narratives, XRP can be left behind, especially during fast risk‑on moves.
4. Profit‑taking from earlier rallies
If XRP had seen strong gains in prior weeks or months, the modest uptick during this spike may simply have offered an attractive opportunity for early entrants to lock in profits, capping the rally.
None of these factors alone fully explain the divergence, but together they help clarify why XRP behaves differently when the market suddenly shifts.
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What XRP traders should watch next
For those monitoring XRP’s outlook after this episode, several elements warrant attention:
– Price reaction at key support and resistance zones
The reaction around the 2.00–2.20 dollar band will be critical. A decisive break and daily close above recent local highs with expanding volume would be a constructive sign. Continued failure to hold above the 2.10–2.20 area, by contrast, would highlight lingering weakness.
– Shift in RSI and OBV trends
A meaningful upturn in RSI toward stronger bullish territory, coupled with a reversal higher in OBV, would signal that real buying interest is returning. Until then, bounces may need to be treated with caution.
– Derivatives positioning in XRP specifically
If funding rates, open interest, and long/short ratios begin to rise in XRP futures, it may hint that leveraged traders are re-engaging. That could set the stage for sharper moves, both up and down.
– Macro catalysts and Fed commentary
The Federal Reserve’s tone following its rate decision could either support or undermine risk assets broadly. A friendlier‑than‑feared outlook might lift the entire crypto market, giving XRP another chance to catch up. Conversely, a surprisingly hawkish message could weigh on all altcoins, making XRP’s lag even more pronounced.
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Could XRP still play catch-up?
History shows that laggard coins sometimes stage delayed rallies after initial moves led by Bitcoin and the strongest majors. If risk appetite continues to build and macro conditions stabilize, there is a scenario in which capital rotates into underperformers like XRP as traders search for relative value.
For that to happen, however, several conditions would likely need to align:
– Bitcoin consolidates without a violent reversal, preserving broader bullish sentiment.
– Ethereum and other top alts maintain strength, signaling that the altcoin cycle has legs.
– XRP’s technicals improve, with higher lows forming on the chart and volume increasing on up days.
– News or narrative catalysts emerge around XRP’s ecosystem, partnerships, or adoption.
Without at least some of these elements in place, XRP may continue to shadow the rest of the market rather than lead it.
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Risk management in a leveraged, headline-driven market
The latest 423‑million‑dollar liquidation wave is a clear reminder of how sudden volatility in crypto can destroy both bearish and bullish leveraged traders. Rapid moves triggered by a mix of macro headlines, regulatory updates, and large whale flows create an environment where risk must be managed carefully.
For market participants, that means:
– Being wary of excessive leverage, especially around major macro events like central bank decisions.
– Recognizing that sharp intraday spikes can be driven as much by forced liquidations as by genuine spot demand.
– Treating laggards like XRP with particular caution: while they can offer catch‑up potential, they also signal underlying hesitancy from the market.
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Bottom line
Bitcoin’s abrupt 10% surge lit a fire under the crypto market and triggered more than 423 million dollars in liquidations, with shorts bearing most of the pain. Ethereum and Solana responded strongly, but XRP once again underperformed, posting only a modest 1–2% gain before slipping back.
Technical indicators like RSI and OBV point to weak demand for XRP despite the improved sector-wide sentiment. With traders waiting on the Federal Reserve’s rate decision and guidance, and with regulatory and narrative headwinds still weighing on the token, XRP remains an outlier – present at the party, but far from the life of it.
Any participation in this market carries significant risk. Each trader has to carefully weigh their own strategy, time horizon, and risk tolerance before acting in conditions as volatile and headline‑sensitive as these.