XRP Sees 2,008% Liquidation Imbalance Amid Market Selloff

What Caused the Sudden XRP Liquidation Spike?

On Saturday, October 24, 2026, XRP experienced a steep price dip that caught many bullish traders off guard. The price fell 3.09% over 24 hours to $1.27, marking its third straight day of declines after a sharp downturn that began on Thursday.

When prices drop suddenly, traders using leverage to bet on price increases can face automatic liquidations. Data from CoinGlass shows XRP total liquidations reached $7.92 million during this movement.

Long positions made up $7.55 million of that total, while short positions accounted for just $375,910. This created a massive 2,008% liquidation imbalance, meaning buyers expecting higher prices were wiped out at a dramatically higher rate than sellers.

How the Broader Crypto Market Is Performing

XRP was not the only cryptocurrency affected by this selloff. Renewed pressure across global financial markets weighed heavily on digital assets, wiping out gains made earlier in the week.

Across the entire crypto market, forced liquidations climbed to $667.71 million within 24 hours. Bullish long positions absorbed most of the damage, taking $528.30 million of those losses.

Other major market events unfolded on the same day. Coinbase issued warnings regarding BitcoinBTC-2.03% long liquidation risks, while Shiba InuSHIB-4.06% reported $0 in coin burns over 24 hours. Meanwhile, analysts evaluated whether coins like DOGEDOGE-4.74%, SHIB, and BNBBNB-3.21% could maintain their momentum.

Network Growth Hits a Record High

Despite short-term price volatility, underlying user adoption on the XRP Ledger continues to grow. Santiment reported that the network reached a record milestone of 8.24 million non-empty wallets.

In a single day, the network added 4,772 new wallets. This represents the fifth-largest single-day surge in user registration since March, signaling steady long-term adoption.

RippleXRP-2.81%'s CTO previously noted that XRP's price could benefit over time from XRPL's overall success. However, research by Alex Dovbnya highlighted that Wall Street institutional trading still heavily influences XRP price trends.

Valuation Metrics and Strategic Partnerships

XRP's Market Value to Realized Value (MVRV) ratio sits at roughly 0.92. This metric indicates that the average holder is currently sitting at a net loss.

Historically, an MVRV below 1.0 reflects a lower-risk entry zone compared to periods when holders carry large unrealized profits. Even so, broader market risk and price fluctuations remain present.

On the ecosystem development front, Swiss-regulated platform Arf announced a partnership with Ripple. The collaboration aims to bring RLUSD-powered settlement liquidity to licensed cross-border payment firms using the XRP Ledger.

Key Price Levels and Potential Scenarios to Watch

Market participants are carefully monitoring two specific price boundaries for XRP:

• The $1.40 Resistance Level: If XRP reclaims $1.40 while daily wallet creation stays above 4,000, a rebound toward $1.50 could follow under favorable market conditions. However, if broader crypto market weakness persists, the price could fail to climb and reverse course.
• The $1.30 Support Level: If XRP loses $1.30 and daily wallet creation drops below 3,000, short-term adoption signals would become far less convincing, opening the door for further downside movement.

Past returns of digital assets or past performance do not guarantee future returns or performance. Investors should always keep market volatility in mind when evaluating crypto assets.