XRP investors capitulate at fastest pace since the 2022 crypto crash amid slide to $1

An important story is making waves across the blockchain ecosystem. XRP’s retreat toward $1 is testing whether one of the cryptocurrency market’s largest tokens can hold a level that has become increasingly important after months of declining prices. Data from shows that the digital asset fell to $1. 02 on Friday, its weakest price since February, as a market-wide selloff prompted traders to reduce exposure to digital assets.

XRP recovered slightly afterward, but the rebound did little to dispel concerns that the decline may be entering a more damaging phase. However, these Strains are emerging across several parts of the market. Leveraged positions are disappearing, derivatives activity has contracted, and investors who once waited for a recovery are increasingly moving their holdings at a loss.

Market Dynamics

The shift has left XRP caught between two possible outcomes. Clearing speculative positions could reduce the risk of another liquidation-driven decline. But without stronger demand from spot buyers, the withdrawal of traders may leave the token with little support if it falls below $1.

Liquidations accelerate the retreat The latest wave of selling gathered pace after XRP dropped toward $1. 07 on Wednesday, triggering about $9 million in long liquidations, CryptoQuant data show. It was the largest daily loss for leveraged bullish traders since Feb.

Binance accounted for roughly half of the total, with about $4. 5 million in XRP long positions closed on the exchange. Related Reading XRP is sitting on a volatility trap as liquidity dries up and leverage builds CryptoQuant data shows XRP liquidity on Binance has fallen to its lowest level since 2020 while futures open interest stays elevated, creating a setup where the next large flow could trigger an outsized move in either direction.

Market Impact

May 26, 2026 Gino Matos XRP Exchange Liquidation (Source: CryptoQuant) Long liquidations occur when falling prices reduce the value of collateral backing a leveraged bullish position. Exchanges then close the trade automatically, adding another sell order to an already declining market. When several positions are concentrated around similar price levels, that process can accelerate a downturn.

The liquidations contributed to a wider reduction in outstanding XRP derivatives positions. Open interest on Binance fell to approximately $205 million, its lowest level since March 22. The measure tracks contracts that remain active rather than those already settled or closed.

Bybit recorded a similar pullback. XRP open interest on the exchange declined to about $185 million, returning close to levels last seen on June 6. The parallel declines across two of the largest venues suggest that traders were reducing exposure throughout the derivatives market rather than responding to conditions on a single exchange.

This shift continues to shape the digital-asset landscape, with analysts examining its near-term effects.