XRP Traders Hit Hard as Liquidations Skyrocket 710% in Just a Day

• XRP liquidations surged 710% in 24 hours, mostly affecting long traders.
• Despite volatility in derivatives, XRP’s spot price has stayed near $3 with modest swings.
• Ripple’s stablecoin RLUSD and trust bank application highlight ongoing growth despite short-term market stress.

XRP traders were left licking their wounds after one of the steepest liquidation events of the month, with data from CoinGlass showing $11.84 million in XRP positions closed in just 24 hours. According to the data, $10.37 million of the losses came from long positions compared to $1.46 million from shorts. That translates into a staggering 710% imbalance, highlighting just how one-sided leverage had become before the market corrected. It was a brutal reminder that derivatives trading, while tempting, can punish traders when bets lean too heavily in one direction.

Meanwhile, XRP dipped briefly to $2.96 before bouncing back to around $3.03, creating the appearance of stability. On spot markets, the movement was modest, but beneath the surface, heavily leveraged positions were being flushed out at alarming speed. This disconnect between visible prices and hidden pressure from liquidations shows how deceptive short-term charts can be when leveraged money piles up on one side of the market.

XRP Adoption and Ripple Lawsuit Victory Provide Balance Against Short-Term Pain

Despite the recent volatility, XRP still carries the momentum it built following Ripple’s settlement with the SEC. That legal breakthrough earlier this month removed one of the longest-running clouds hanging over the token. Investors who had been hesitant now see greater clarity, and the asset’s steady climb in the weeks after the settlement reflected this newfound confidence. While derivatives traders suffered from misplaced leverage, spot investors and long-term holders were quick to point out the bigger picture.

Furthermore, Ripple’s ongoing push to expand payment solutions and cross-border remittances has boosted confidence in the token’s relevance. Community support remains strong, and that plays a role in stabilizing sentiment even during turbulent trading. The contrast is sharp: derivative markets may experience significant swings, but real-world use cases and institutional moves suggest the token has staying power.

Ripple’s RLUSD Stablecoin and Trust Bank Ambitions Strengthen its Ecosystem

At the same time, Ripple is building beyond XRP price action by rolling out a growing suite of financial products. Its stablecoin, RLUSD, is now live on both the XRP Ledger and Ethereum. Integrated into Ripple Payments, RLUSD had already approached a $250 million market cap by April, and fresh data shows its outstanding supply around $730 million as of mid-September. This makes RLUSD one of the stronger dollar-backed tokens by float, offering traders and institutions alike an alternative to existing stablecoin giants.

On the other hand, Ripple has filed for a national trust bank charter under the name Ripple National Trust Bank. If granted, the charter would allow the company to operate within the U.S. banking framework, offering custody and issuance services for digital assets. For XRP investors, the implications are significant. It would mark a shift from purely crypto-native platforms toward integration with regulated banking structures. 

What XRP Traders Can Learn From Liquidations 

For now, XRP’s immediate challenge lies in holding the $3 price level. If it manages to maintain this support, it could calm markets after a wave of forced selling. If not, another round of liquidations could easily emerge as traders re-enter positions without addressing the risks that triggered the imbalance in the first place. The lesson is simple: leverage magnifies risk, and relying solely on short-term charts can leave investors blind to deeper forces at play.

At the same time, Ripple’s ecosystem is showing signs of resilience that extend well beyond intraday price action. Statistics show that the stablecoin RLUSD is growing, with regulatory changes and community support remaining key factors for stability. Liquidations may dominate the headlines for now, but the long-term story hinges on the possibility of Ripple connecting crypto with mainstream finance. If progress continues, the market may look back at this week’s liquidation frenzy as just another bump on a much longer road.