XRP once again became the focus of the cryptocurrency market. According to CoinGlass data, during the market volatility in early September, the liquidation imbalance ratio of XRP reached an astonishing 69%, while the price fell below a key support level.
As of September 3, 2025, data from the Gate platform shows that the XRP trading price is $2.82, with a 24-hour decline of 0.69%, and the market capitalization has decreased to $167.78 billion, causing it to drop to fourth place in market ranking, surpassed by the stablecoin USDT.
Clearing imbalance phenomenon
The recent degree of liquidation imbalance in the XRP market is shocking. Data from CoinGlass shows that at the end of August, the long liquidation amount for XRP reached as high as $1.24 million in just one hour, while the short liquidation was only $54,950.
This imbalance ratio exceeds 2,200%, clearly demonstrating that the market leverage is severely biased towards the long side. This is not the first time this has happened with XRP; as early as March, XRP experienced a liquidation imbalance of up to 12,763%.
In June, an abnormal 3,222% liquidation imbalance led to XRP price The price plummeted and broke the key psychological level of 2 dollars. In late July, XRP saw an astonishing liquidation gap of 10,409%, with long liquidations amounting to 37.85 million dollars, while short liquidations only reached 360,000 dollars.
The double-edged sword of leveraged trading
Leverage trading is very common in the cryptocurrency market, but it is a double-edged sword. When there are slight fluctuations in the market, it can lead to large-scale liquidations of high-leverage positions.
Even in the context of minimal price fluctuations, there can be significant liquidation imbalances in the XRP market. On June 20, the XRP price rose slightly from $2.14998 to $2.15417, an overall increase of only 0.2%, yet it triggered a large-scale liquidation.
This phenomenon of large-scale liquidations triggered by minor price fluctuations demonstrates the market’s excessive reliance on leverage and the overly optimistic sentiment of investors towards XRP.
Whale behavior and retail differentiation
Despite the large-scale liquidations in the derivatives market, on-chain data shows that whale investors are actively accumulating XRP.
According to cryptocurrency analyst Ali, whales holding 10 million to 100 million XRP have purchased 340 million tokens in the past two weeks, and their current total balance is approximately 7.84 billion XRP.
Santiment’s data further reinforces this accumulation trend, showing that large wallets continue to increase their holdings even as the XRP price declines. This whale accumulation stands in stark contrast to the liquidations of retail investors, revealing the strategic differences among market participants.
Market Reaction and Price Outlook
After the liquidation event, XRP’s relative strength index once entered the oversold territory, releasing signals of market recovery. Analysts believe this may be a precursor to a price rebound.
If XRP can stabilize above $2.90, it is expected to accumulate enough momentum to return to the $3 level. Once it breaks through $3.26, it may trigger a short squeeze, pushing the price up rapidly to $3.30.
However, if it falls below $2.90, the bulls will be in trouble, especially as the overall market continues to weaken. The one-hour chart for XRP shows that the price has rebounded above $2.80 after hitting a low of $2.70.
ETF Expectations and Long-term Outlook
In addition to technical factors, there are also potential catalysts in the fundamentals of XRP. The expectation of ETF approval may become a bullish factor in the future.
Recently, Amplify Investment Company has submitted an application for an XRP ETF, joining many others waiting for SEC regulatory approval. If approved, this could bring substantial institutional funds to XRP.
As the litigation events cease to be price catalysts, the next round of increase for XRP in an oversold state will be more driven by endogenous market forces.
Investor Insights and Risk Warning
The imbalance phenomenon in XRP clearing provides important insights for investors. High-leverage trading carries extremely high risks in the highly volatile cryptocurrency market.
Investors should pay attention to controlling risks and avoid excessive exposure in a high-leverage environment. It is especially important to remain cautious when market sentiment is overly optimistic.
Focusing on fundamental changes is more beneficial for long-term investment success than chasing short-term fluctuations. For XRP, the progress of the SEC lawsuit remains an important fundamental factor to pay attention to.
Future Outlook
Market data shows that despite ongoing liquidation pressures, whale investors of XRP have accumulated 340 million tokens over the past two weeks, indicating that large investors remain confident in the long-term prospects of XRP.
Blockchain data confirms that large wallets continue to increase their holdings even during price declines. This divergence between smart money and retail sentiment suggests that the future of XRP may be brighter than it appears on the surface.
