2026-01-20 03:24:36

XRP's recent decline has caused many traders to suffer. The price has fallen from a high level to around $1.85, and although there are signs of a rebound later on, the overall market sentiment remains quite suppressed. Macroeconomic uncertainties are increasing, and investors are becoming more cautious. Analysts are warning that the crypto market may enter a more intense correction cycle.

Against this backdrop, the futures market has become a battlefield of longs and shorts. High leverage amplifies every fluctuation, especially on January 18th. According to CryptoQuant data, traders going long almost all had a tough time that day.

What exactly happened that day? All major exchanges experienced large-scale forced liquidations of long positions. This wasn't investors actively stopping losses, but rather the price falling too quickly, causing margin levels to instantly fall below requirements, and the system forcibly liquidated their positions. In simple terms, some traders used too much leverage, and when the market turned, they couldn't react in time.

Data shows that the total XRP long liquidation amount on that day exceeded $5 million, making it the most severe incident in January. The largest liquidation was on a major exchange, with about $1.05 million in long positions forcibly closed, indicating the platform's high trading volume and the significant impact of price fluctuations.

Ultimately, this decline was not just a simple price adjustment but a collective escape of high-leverage funds. For retail investors, this is a profound lesson—when the market is unstable, leverage should be used with caution. Whether XRP can hold the $2 level depends on when market sentiment can truly recover.

XRP-2,92%

View Original

This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.

13 Likes

Reward
13
3
Repost
Share

Comment

0/400

LiquidityWitch

· 10h ago

Another wave of liquidation feast, this time it's the XRP bulls' turn. Truly... the words "high leverage" are filled with tragedy. --- 5 million liquidated... I just want to ask, are those using 10x or 20x leverage really not afraid? --- Breaking the 1.85 level like this, still want to hold 2? I think it's doubtful, depends on the Federal Reserve's stance. --- That's why I only trade spot; the futures market is just an upgraded version of a casino, really. --- A top exchange ate up a long position of 1.05 million in one bite. No wonder the liquidity is so terrifying. --- Every time there's a sharp drop, I thank myself for not using leverage... retail investors are tough. --- Macro uncertainties, yet still dare to go all-in on longs? Truly brave. This lesson is cheap for you. --- Market warming up? When do you think that will be... I see no hope anyway. --- Basically, it's just being cut again and again; there are always people making money and others losing. --- The liquidation data is so terrifying, indicating that the open interest is indeed at high levels, a sign of danger.

View OriginalReply0

SchrodingerAirdrop

· 10h ago

This wave of leveraged liquidation is truly a brutal lesson in reality, over 5 million just gone... It's that old saying again, "You won't cry until you see the coffin," only understanding what risk really is after forced liquidation. At this pace, XRP feels like it needs to drop a bit more before stabilizing. The desire for quick profits is causing reckless behavior, and in the end, it's all tears. I already said not to play with 10x leverage, but no one listened... Can the 2-dollar support hold? Honestly, it's uncertain.

View OriginalReply0

GasFeeBarbecue

· 10h ago

5 million liquidation in one day? Ha, I told you not to use high leverage, and now look—many people got liquidated. XRP dropping to 1.85 is so tragic, it seems we still need to grind the bottom. Leverage doesn't just kill people; every lesson is learned at a bloody cost. For those who got liquidated on January 18, are you guys doing okay now? If we can't hold 2 dollars, this month might continue to hit new lows. Using high leverage is fun, but closing positions is even more satisfying—except for the wallet. By the way, once CryptoQuant releases this data, all the bulls should wake up. Before market sentiment warms up, it's safer to stay flat—don't mess around blindly.

View OriginalReply0