XRP Liquidations Surge While Ripple Mint Sparks Debate on Token Demand

Liquidation Cascade and Market Weakness

XRP traders absorbed substantial losses over the weekend as the cryptocurrency came under renewed selling pressure. According to liquidation data from Coinglass, the past 24 hours saw $2.12 million in total XRP liquidations, with bullish traders bearing the brunt at $1.99 million. Bearish positions liquidated just $127,430, creating an imbalance of roughly 15.6-to-1 in favor of long positions being wiped out. Within a 12-hour window, liquidations totaled $257,760, with long liquidations reaching $169,790 compared to $87,970 for shorts. The sharp disparity indicates that leveraged long traders betting on price recovery have been forced to exit positions at losses.

The liquidation cascade arrived amid broader weakness in XRP’s spot market. Over 24 hours, XRP declined 0.26% while its market capitalization fell 0.15% to approximately $68.2 billion. More concerning for bullish sentiment, trading volume contracted 26.59% to $785.29 million, suggesting market participants are pulling back from the token amid uncertainty. XRP currently trades within a tight $1.06 to $1.10 range with roughly 62.53 billion of its approximately 99.98 billion total supply in circulation. The token maintains approximately 544,970 holders, though recent price action has kept it near $1.09 as three-day declines accelerated. Technical indicators show Bollinger Bands contracting on higher timeframes, a pattern that historically precedes significant directional moves but can also signal prolonged consolidation.

Ripple Mint Launch Reignites RLUSD-XRP Debate

The timing of XRP weakness coincides with Ripple’s announcement of Ripple Mint, an institutional platform for managing its RLUSD stablecoin. According to Ripple, the platform consolidates access, minting, redemption, and management functions within a single interface, addressing operational friction for institutions deploying RLUSD at scale. Through Ripple Mint, institutional users can mint and redeem RLUSD directly, bridge assets across supported networks, monitor transaction lifecycles, and integrate the stablecoin into internal workflows. With RLUSD’s market capitalization reaching approximately $1.5 billion, Ripple’s stablecoin infrastructure continues expanding—but the announcement has reignited a persistent debate about whether this growth benefits XRP holders. Market observers note that institutions can use RLUSD for payments and settlement without acquiring XRP, potentially limiting how effectively stablecoin adoption translates into buying pressure for the token itself. This dynamic has fueled a more cautious narrative around XRP as its broader momentum stalls.

What’s Next for XRP

The convergence of long liquidations, declining spot volume, and questions surrounding RLUSD adoption and XRP demand has left the token at a critical juncture. A break below the $1.06 support level could accelerate bearish sentiment and invite further selling from leveraged traders. Conversely, a recovery above the upper boundary of its current range would provide bulls a chance to reestablish momentum. For now, range-bound consolidation appears most likely, though historical patterns suggest such periods often precede directional breakouts. How Ripple’s institutional infrastructure growth ultimately translates to XRP token value could determine whether the token breaks out or remains range-bound.

Source: Coinglass, via U.Today. Not financial advice.