XRP’s price recently faced a significant decline, resulting in over $700 million liquidated in the market. This drop was a part of a larger downturn affecting the entire cryptocurrency space, with XRP falling to approximately $1.2 on Binance’s perpetual contracts, a decrease of 60%. This unprecedented price action led to the liquidation of nearly $1 billion in leveraged positions over just 24 hours.

Why is XRP’s Price Declining?

The causes behind this drastic decline are still uncertain; however, the cryptocurrency market as a whole is experiencing one of its largest crashes in recent years. As noted by CryptoPotato, nearly $20 billion worth of leveraged positions were cleared in the market after Bitcoin’s price fell from over $122,000 to around $105,000 on various exchanges.

It’s worth mentioning that Bitcoin’s decline is often mirrored in altcoins, and surprisingly, XRP wasn’t the worst performer; for example, ATOM saw nearly 99% of its value erased before it recovered.

Currently, XRP has managed to recover slightly and is trading around $2.4 on Binance.

The reasons for XRP’s drop cannot be solely isolated, as the entire market’s downturn contributed to its decline. This event serves as a stark reminder of the volatility associated with leveraged positions in cryptocurrencies.

XRP Price Chart

Source: TradingView

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• Altcoin Bloodbath: ETH, XRP, SOL, DOGE Crumble as Liquidations Near $900M
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• Why Ripple’s (XRP) $3 Support Could Be the Start of a New Rally

This incident again highlights the inherent risks associated with leverage trading in the highly volatile altcoin market.