The cryptocurrency market experienced significant pressure, with XRP declining to $1.92. However, underlying on-chain metrics present a more complex picture than the price chart suggests, revealing a stark contrast between short-term sentiment and long-term holder behavior.
A Costly Lesson in Leverage
A dramatic liquidation event underscored the perils of excessive leverage. One trader faced a devastating loss of $14.06 million after a highly leveraged position was wiped out. The trade, which initially involved $74.68 million with 10x leverage betting on a price increase from $2.292, triggered a cascade of liquidations. Over a four-hour period, the derivatives market saw a liquidation imbalance of 21,506%, with long positions accounting for nearly all of the forced closures. This occurred against a backdrop where open interest for XRP perpetual contracts had previously stood at approximately $1.4 billion. Technical analysts now identify the next key support level at $1.66 if the current correction continues.
Geopolitical Worries Drive Safe-Haven Flows
The sell-off extended beyond XRP, impacting the broader digital asset landscape. The total crypto market capitalization fell by 3% to $3.21 trillion. This movement was primarily catalyzed by renewed trade concerns after former President Trump threatened to impose new tariffs on European nations involved in the Greenland dispute.
Traditional safe-haven assets saw immediate inflows in response. Gold prices climbed to a new record high above $4,700, with silver following suit. Major cryptocurrencies mirrored the downturn: Bitcoin retreated into a range between $91,000 and $92,500, while Ethereum’s value decreased by 3.6%. XRP closely tracked the movement of these leading assets, surrendering the gains it had accrued during the prior week.
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Institutional Accumulation Contrasts Price Action
Fundamental data reveals a notable divergence from the negative price trend. Holdings of XRP on centralized exchanges have plummeted by 57%, now resting between 1.6 and 1.7 billion tokens. This represents the lowest level of exchange reserves in seven years, indicating that large holders are moving their assets into cold storage—a pattern typically associated with long-term holding strategies rather than immediate selling plans.
Concurrently, institutional products are gathering steady interest. The Canary Capital XRPC ETF has recorded consistent inflows since its launch in November 2025, accumulating roughly $1.3 billion without a single day of net withdrawals. Furthermore, Ripple’s RLUSD stablecoin has achieved a market capitalization of $1.33 billion, enhancing overall liquidity within the XRP Ledger ecosystem.
Market Outlook: Clashing Timeframes
The current environment is defined by a tension between immediate fear and structured, medium-term confidence. Researchers at Standard Chartered maintain their price target of $8 for XRP in 2026, citing the anticipated impact of the CLARITY Act and the expanding utility of the RLUSD stablecoin as key foundational drivers.
In the near term, the $1.92 price level serves as a critical marker. A breakdown below this point could see the asset test the $1.66 support zone. Conversely, a stabilization of Bitcoin above $92,500 would likely provide the momentum for XRP to reclaim the psychologically important $2 threshold.
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