XRP Price Declines to $1.12 on Forced Liquidations, US Fed Tone
Ripple (XRP) price declined by 4.11% to $1.12 on Friday, underperforming a broadly weaker crypto market, primarily driven by a violent unwinding of leveraged positions in the derivatives market.
A sharp 14.5% contraction in derivatives open interest triggered a leverage shakeout, with $7.41 million in liquidations on the long side accelerating the sell-off.
Price slipped after a sudden 14.5% drop in XRP futures open interest over 24 hours, triggering a deleverage event. This was accompanied by $7.41 million in liquidations, with $6.59 million from long positions, indicating over-leveraged traders were flushed out.
The bulk of selling pressure came from forced liquidations, not heavy spot selling, which can lead to a volatile but potentially exhausted decline.
The sell-off was framed as a reaction to Federal Reserve “higher for longer” interest rate fears rather than XRP-specific news. Bitcoin fell 2.32%, tightening correlations and dragging altcoins lower in a broad risk-off move.
XRP’s price action remains heavily tied to broader macro sentiment and Bitcoin’s direction in the near term. Technically, XRP is testing major weekly support at $1.13 and trades below all key moving averages (the 200-day is at $1.56), indicating a weak trend.
The upcoming U.S. Personal Consumption Expenditures (PCE) inflation data will be a critical macro trigger. The trend is bearish below the $1.20–$1.30 resistance zone. A hold above $1.13 is needed to prevent a deeper slide.
The combination of a derivatives flush and macro headwinds has overwhelmed positive ecosystem news, keeping XRP in a downtrend. #XRP Price Declines to $1.12 on Forced Liquidations, US Fed Tone
