$16.2 Million XRP Positions Wiped Out in One Day Amid Price Slump – What Next?

In Brief:

• XRP traders lost $16.2 million through liquidations within 24 hours, with long positions representing 84% of the total losses recorded.
• Defending the $1.3798 Fibonacci support could preserve XRP’s recovery structure and projected targets of $1.88, $4.11, and $7.07 during volatility.
• US spot XRP ETFs purchased 73.2 million tokens worth $105 million, providing institutional demand as leveraged market exposure declined.

XRP traders lost $16.2 million through liquidations within 24 hours as the cryptocurrency slipped toward its critical $1.38 support level. Long positions represented 84% of the losses, showing that bullish traders suffered most during the latest price decline. XRP traded near $1.40 following its retreat from $1.70, forcing exchanges to close numerous undercollateralized leveraged positions.

XRP Faces a Critical Test Around $1.38 Support

According to crypto analyst Diana, XRP’s next movement may depend heavily on whether buyers can defend the $1.3798 Fibonacci level. Holding this area could help the cryptocurrency establish a base and recover some losses from the recent slump.

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ANOTHER $16 MILLION in $XRP Positions Just Got WIPED OUT in 24 HOURS — 84% Were LONGShttps://t.co/CFtac1ZKNRpic.twitter.com/v1A4BBbGB7

— Diana (@InvestWithD) August 31, 2026

Moreover, defending $1.38 would preserve the technical structure supporting projected Elliott Wave targets of $1.88, $4.11, and $7.07. Conversely, losing this support could expose XRP to additional selling pressure and weaken the projected bullish structure.

XRP ETF Demand Offers Supportive Market Signal

Analyst Ali Martinez, popularly known as Ali Chart, noted that US spot XRP ETFs purchased approximately 73.2 million XRP during the week beginning August 24. Those purchases carried an estimated value of $105 million, indicating substantial demand through regulated investment products.

$105 MILLION IN XRP BOUGHT

US spot XRP ETFs recorded net inflows of roughly 73.2 million ripple:native during the week of August 24, signaling a notable increase in demand. https://t.co/eapjCrEOlgpic.twitter.com/ZvOJF0Jbhy

— Ali Charts (@alicharts) August 31, 2026

Significantly, ETF inflows contrasted with derivatives activity, where leveraged long traders experienced heavy losses during the decline. ETF investments do not face the same forced liquidation risks affecting highly leveraged futures positions during unfavorable price movements. Therefore, sustained ETF demand could provide broader support while speculative positioning resets following the liquidation event.

Reduced Leverage Could Reshape XRP’s Next Move

Large liquidation events remove crowded positions and may reduce the immediate threat of further forced selling. However, reduced leverage cannot automatically produce buying pressure or confirm that XRP has reached a local bottom.

A sustained recovery above $1.70 would significantly strengthen the short-term outlook and place the $1.88 target within closer reach. Meanwhile, sustained trading below $1.38 would weaken bullish expectations and raise the possibility of a deeper correction.

Conclusion

XRP’s immediate direction rests on support strength, spot demand, and whether ETF inflows translate into wider buying activity. Although long traders suffered heavily, defending $1.3798 could preserve the projected recovery path toward higher technical targets.

Also Read: Sberbank Sees Russia’s Crypto Trading Volume Reaching $46 Billion Under New Laws

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