Ripple’s XRP Tumbles 15% to a 5-Month Low of $1.64, Liquidations Exacerbate the Plunge

Ripple’s XRP, a prominent cryptocurrency with a $102 billion market cap, experienced a dramatic plunge on Monday

Ripple’s XRP price plunged to a five-month low of $1.64 on Monday, as cryptocurrency prices tumbled amid broader market turmoil and nearly a billion dollars in liquidations across the market, including $320 million for Bitcoin (BTC) and $270 million for Ethereum (ETH).

As of 08:05 (GMT+2), XRP slid by 15% in the past 24 hours to $1.75.

Cryptocurrency prices tumbled on Monday, amid broader market turmoil and nearly a billion dollars in liquidations across the market, including $320 million for Bitcoin (BTC) and $270 million for Ethereum (ETH) in the past 24 hours, according to data from Coinglass.

Liquidations occur when traders’ positions are closed by brokers due to a lack of available margin to sustain open trades, usually during periods of rapid price movements. In essence, traders who had borrowed funds to amplify returns saw their trades closed at a loss, adding to the selling pressure.

Among the major tokens, XRP saw the most liquidations with $47 million in long positions liquidated, intensifying the token’s slide as seen in the chart above.

Over the past month, XRP has lost more than 25% of its value, highlighting its sensitivity to shifts in global risk sentiment.

As U.S. President Donald Trump unveiled a massive tariff package on Tuesday, targeting nearly all imports, traders reacted by selling off equities and digital assets.

The U.S. president's trade policies have dominated financial discourse in recent days, as he announced plans to impose tariffs on almost all goods coming into the U.S., aiming to reduce the trade deficit and create jobs. However, this move sparked fears of an economic slowdown, leading to broad selloffs across equities and cryptocurrencies.

Moreover, traders appeared to be reducing their cryptocurrency holdings amid heightened volatility and diverging monetary policies across major economies, which also weighed on the tokens.

As trade tensions escalate, particularly with key U.S. trading partners, investor confidence has waned, hitting speculative assets like XRP the hardest.

However, despite the sharp decline, XRP saw a massive trading volume of $11.49 billion over the past 24 hours, a 436% surge, indicating heightened activity even as prices cratered below $2.

While the token’s long-term utility in cross-border payments remains a point of discussion, its immediate outlook appears bleak, caught in the crosshairs of macroeconomic instability and aggressive market liquidation.