XRP Liquidations Surge as ETF Hype Fades: Over $9M in Longs Wiped Out

XRP has captured market attention once again as traders closely monitor price movements following the debut of the first spot XRP ETF. Despite expectations of a strong bullish rally, the XRP derivatives market has disappointed optimistic traders, with fresh data from Coinglass revealing that more than $9.09 million in long positions were liquidated within just four hours.

During this period, the total liquidation amount reached nearly $10 million, with long positions accounting for the overwhelming majority. In contrast, only about $271,000 worth of short positions were liquidated. This dramatic disparity resulted in a staggering 3,254% liquidation imbalance favoring bearish traders—one of the most notable shifts in recent weeks.

The sharp liquidation spike has sparked renewed debate among market participants who had anticipated XRP to climb following the highly publicized Canary XRP ETF launch. Instead of delivering the anticipated upside breakout, XRP experienced a swift downturn, sliding back to the $2.3 range and invalidating bullish predictions in the short term.

This one-sided liquidation trend highlights how aggressively traders positioned themselves ahead of the ETF launch, driven by heightened speculation and hopes of a strong bullish continuation. Many analysts now interpret this market reaction as a classic “buy-the-rumor, sell-the-news” scenario. Bullish traders built significant leverage expecting a breakout, only to be met with immediate selling pressure once the ETF went live.

Market experts had previously cautioned that excessive bullish positioning could trigger a wave of liquidations if XRP failed to meet expectations. Their warnings ultimately proved accurate, as the ETF debut coincided with an abrupt correction rather than the anticipated surge.

Despite the setback, XRP remains a closely watched asset, and traders are now assessing whether the recent liquidation flush could pave the way for more stable price movement or if bearish momentum will persist in the short term.