Shocking XRP News: Ethereum & XRP Plunge Amidst $735M Crypto Liquidations

The cryptocurrency market often feels like a rollercoaster, and July 24, 2025, was certainly one of those days. A dramatic selloff swept across the digital asset landscape, triggering over $735 million in liquidations. This sudden downturn left many traders reeling, as leveraged positions were wiped out in a swift market correction. If you’ve been following XRP news or watching the broader crypto space, you’re likely wondering what exactly triggered this cascade and what it means for your portfolio.

Understanding the Crypto Liquidations Cascade

When the market takes a sharp turn, terms like ‘liquidations’ become front and center. But what do they really mean? In simple terms, a liquidation occurs when an exchange forcefully closes a trader’s leveraged position due to a significant loss of initial margin. This happens when the market moves against a trader’s bet, and they no longer have enough collateral to maintain their position.

• On July 24, 2025, the crypto market saw a staggering $735 million in total liquidations.
• Long positions, which bet on rising prices, accounted for over $625 million of these losses, indicating a widespread panic among those expecting continued upward momentum.
• This rapid unwinding of leveraged trades amplifies price movements, turning what might be a modest decline into a sharp selloff as positions are automatically closed, adding selling pressure.

The sheer scale of these crypto liquidations underscores the high leverage present in the market, making it particularly susceptible to sudden shifts. When prices start to dip, these forced sales can create a downward spiral, catching many off guard.

Why Did Ethereum Price and XRP Take the Brunt?

While Bitcoin (BTC) certainly felt the pressure, dropping below the $120,000 threshold to trade near $118,000, it was Ethereum (ETH) and XRP that bore the brunt of the decline. Their more pronounced drops highlight specific vulnerabilities within the altcoin sector during broader market corrections.

• Ethereum price plummeted 3.6% to $3,540, leading to $152.78 million in long ETH positions liquidated.
• XRP saw an even steeper fall, dropping 6% to $3.25, with $88.58 million in long XRP positions liquidated.
• In comparison, Bitcoin’s long liquidations stood at $65.29 million, significantly less than ETH or XRP, indicating altcoins faced disproportionate pressure.

This outsized impact on ETH and XRP suggests that altcoins, often seen as higher-risk, higher-reward assets, are more sensitive to market downturns, especially when leverage is high. Both Ethereum and Solana, another major altcoin, also breached key support levels, intensifying the downward pressure across the board.

The Impact of Whale Selling on Altcoins

A significant factor contributing to the market’s tumble was profit-taking, particularly from large holders often referred to as ‘whales.’ These entities, with substantial crypto holdings, can significantly influence market dynamics when they decide to sell.

Network profit/loss data revealed substantial realized gains for BTC, ETH, and XRP since May. This data suggests that many investors, including whales, were sitting on considerable profits. When Bitcoin began its retreat from its recent all-time high, it likely triggered these large holders to secure their gains, leading to a wave of selling pressure.

The lack of a clear, singular negative catalyst for the market’s sudden drop, combined with this strategic profit-taking by large players, exacerbated the volatility. When a major whale selling event occurs, it can create a ripple effect, prompting smaller investors to also sell, fearing further declines. This collective action can quickly turn a correction into a deeper dip, especially for altcoins that are typically less liquid than Bitcoin.

Navigating the Volatile Altcoin Market

Despite the immediate turbulence, the broader outlook for the altcoin market shows some intriguing signs of resilience. While short-term volatility is a given, underlying market fundamentals suggest potential for future stability or growth.

One key indicator is the ‘altcoin season index,’ which currently stands at 49. This threshold is often associated with momentum shifts, suggesting that while Bitcoin might be consolidating, interest could soon rotate back towards smaller tokens. Furthermore, institutional interest in the crypto space remains robust, signaling long-term confidence despite short-term price fluctuations.

Perhaps most surprisingly, liquidity for major altcoins, including Ethereum and XRP, reached record levels amid the selloff. Ethereum’s 1% market depth – a measure of capital available to absorb price movements – hit its highest point in 2025. Similarly, XRP saw robust order books. This deep market support indicates that despite the selling, there’s significant capital ready to buy and sell, which could stabilize prices or even fuel future growth if trading volumes pick up from their current below-average levels.

What’s Next for XRP News and the Broader Market?

The recent market movements serve as a potent reminder of the inherent volatility in the cryptocurrency space. For those tracking XRP news, Ethereum, and other digital assets, understanding the interplay between retail activity, leveraged trading, and institutional confidence is crucial.

While the immediate focus remains on short-term price action and the potential for further corrections, the long-term narrative continues to evolve. The strong underlying liquidity for major altcoins, coupled with sustained institutional interest, suggests that this selloff might be a healthy market correction rather than a fundamental shift in sentiment. Investors should continue to monitor trading volumes, liquidation levels, and key support/resistance zones to gauge the next phase of market direction. As always, diversification and a clear risk management strategy remain paramount in this dynamic environment.

Frequently Asked Questions (FAQs)

Q1: What exactly are crypto liquidations?

A1: Crypto liquidations occur when an exchange automatically closes a trader’s leveraged position because the market moves against their bet, and their collateral (margin) falls below a required threshold. This prevents further losses for the trader and the exchange.

Q2: Why did Ethereum (ETH) and XRP experience larger drops than Bitcoin (BTC) during this selloff?

A2: Ethereum and XRP, as altcoins, are often more susceptible to volatility due to lower liquidity compared to Bitcoin and higher speculative interest. When profit-taking or whale selling occurs, the impact on altcoins can be more pronounced, leading to larger percentage drops and higher liquidation volumes for these assets.

Q3: What is ‘whale selling’ and how does it affect the market?

A3: ‘Whale selling’ refers to large-scale sales of cryptocurrency by individuals or entities holding significant amounts of a particular asset. When whales sell, their substantial volume can create significant selling pressure, driving down prices and often triggering panic among smaller investors, leading to a broader market decline.

Q4: Does increased market depth for ETH and XRP indicate a bullish future despite the recent plunge?

A4: Increased market depth, which signifies more capital available to absorb price movements, can be a bullish sign. It suggests strong underlying demand and supply, meaning the market is more resilient to large price swings. If trading volumes pick up, this deep liquidity could support price stability or facilitate future growth for ETH and XRP.

Q5: Is now a good time to buy XRP or Ethereum after the dip?

A5: Market timing is always challenging, and this article does not provide financial advice. While dips can present buying opportunities for long-term investors, it’s crucial to conduct your own research, assess your risk tolerance, and consider market indicators. The presence of high liquidity might offer some support, but volatility remains a key factor.