Liquidation imbalance hits 10,535% in one hour—how holders can earn up to $5,000

XRP derivatives experienced a rare 10,535% liquidation imbalance during the Labor Day period, a time typically characterized by lower liquidity.

XRP has recently undergone significant market volatility. Amidst the relatively low liquidity of the Labor Day holiday, the price briefly retraced to around $1.38, triggering the forced liquidation of a large number of leveraged long positions. Subsequently, XRP fluctuated around the $1.40 mark, signaling a market-wide “leveraged flush-out.”

This correction does not imply a fundamental shift in XRP’s underlying value. Recent data show a marked decline in open interest and leverage levels, with approximately $14.2 million in XRP-related liquidations occurring across the market over the past 48 hours. This indicates that previously concentrated leveraged positions are being gradually cleared, easing short-term speculative pressure.

Meanwhile, long-term interest in XRP remains intact. US spot XRP ETFs have recorded net inflows for eight consecutive weeks; the most recent week saw an inflow of approximately $19 million. Although the volume has decreased compared to earlier periods, the sustained positive inflow demonstrates that institutional investor interest in XRP has not waned.

For investors concerned about potential losses from further short-term price drops, a practical question arises: beyond simply waiting for the price to rise, are there more flexible ways to utilize their digital assets and explore opportunities for long-term returns?

Against this backdrop, an increasing number of XRP holders are shifting their investment strategies toward EX DeFi cloud mining platforms. They are seeking a more stable path for asset growth that is insulated from the volatility of the broader cryptocurrency market.

Why has XRP been so volatile recently?

XRP’s recent volatility is closely linked to the concentration of leveraged positions, shifts in market liquidity, and rapid changes in investor sentiment.

XRP had previously surged in August, briefly approaching the $1.70 mark. This rapid rise attracted a large number of leveraged traders to the market; when the price subsequently retreated from its highs, stop-loss orders and forced liquidations on long positions were triggered, further amplifying the downward movement. 

This type of “long squeeze” often triggers a chain reaction: prices fall → long positions are forced to close → market selling pressure mounts → prices weaken further. Recently, XRP open interest dropped from approximately $558 million to $478 million—a decline of about 14%—indicating a significant contraction in market leverage.

From another perspective, the reduction in leverage could also signal that the market is undergoing a repricing process. With highly leveraged positions cleared out, any subsequent capital inflows could actually lead to a healthier price trajectory.

Are the bullish factors for XRP fading?

Not at all. Although XRP faces short-term price pressure, there are still noteworthy positive factors regarding its ecosystem development.

First, on Sep. 1, Ripple unlocked 1 billion XRP tokens in accordance with its established escrow mechanism. It is important to note that an escrow unlock does not mean the entire 1 billion XRP is dumped onto the market; a significant portion of the tokens is typically returned to escrow. Following this unlock, XRP did not experience the massive sell-off the market had previously feared.

Second, capital inflows into XRP ETFs remain positive. Recent data show that US spot XRP ETFs have recorded net weekly inflows for eight consecutive weeks. While the inflow of approximately $19 million last week was lower than the previous week, the sustained positive inflow remains a key signal for the market.

Therefore, a more accurate assessment is not that “bullish factors for XRP have vanished,” but rather that the price is currently digesting profit-taking and leveraged positions following the recent rally, while medium- to long-term fundamentals remain supported by institutional capital, ETFs, and the growth of the XRPL ecosystem.

What should be watched regarding XRP’s next price moves?

Currently, the $1.40 level has become a critical psychological benchmark for the market.

If XRP can firmly re-establish itself above $1.40 and gradually break through the $1.45–$1.50 range, market sentiment could improve. A further breakout above the previous resistance zone of $1.65–$1.70 would likely make the $2.00 mark a key psychological target for investors once again.

Conversely, if XRP consistently fails to hold the $1.40 level, there is a risk of a further pullback to previous support zones.

XRP investors seek additional ways to generate returns

For long-term XRP holders, short-term price fluctuations do not necessarily translate into increased returns. Beyond simply waiting for the price of XRP to rise, some investors are turning to digital asset yield models—such as cloud mining—to enhance the utility of their assets and generate returns through alternative methods.

The EX DeFi cloud mining platform specializes in cloud-based computing power services, allowing users to participate in mining operations online without the need to purchase or maintain specialized mining hardware.

About EX DeFi

Founded in the UK, EX DeFi is a platform dedicated to cloud mining and digital asset-related services. By leveraging cloud computing power, intelligent technology, and digital asset infrastructure, the platform offers users a convenient way to engage with digital assets.

The platform employs a multi-layered security architecture, featuring:

• Annual financial and security compliance audits by PwC;
• Digital asset custody insurance from Lloyd’s of London;
• Enterprise-grade network protection via Cloudflare and McAfee® security systems; security measures such as cold wallet isolation and real-time risk monitoring;
• Multi-layered encryption architecture, AI-driven intelligent risk control, and two-factor authentication (2FA).
• Currently, EX DeFi supports a wide range of mainstream digital assets, including XRP, BTC, ETH, USDT, USDC, DOGE, LTC, and SOL.

Three steps to get started with EX DeFi

1. Register an account

Sign up via official EX DeFi channels using your email address. New users receive a $17 trial bonus.

2. Select a cloud mining contract

Choose a cloud mining contract that aligns with your budget and investment goals, then start mining with a single click.

3. View earnings

Once the contract is activated, the system automatically allocates computing power and calculates earnings. Users can choose to withdraw their profits or reinvest in future mining contracts. 

Mining Contract Plans:

Investment: $100 | Duration: 2 days | Daily return: $4 | Total profit: $100 + $8

Investment: $500 | Duration: 6 days | Daily return: $6.5 | Total profit: $500 + $39

Investment: $1,000 | Duration: 10 days | Daily return: $13.5 | Total profit: $1,000 + $135

Investment: $5,000 | Duration: 20 days | Daily return: $73.5 | Total profit: $5,000 + $1,470

Investment: $10,000 | Duration: 30 days | Daily return: $161 | Total profit: $10,000 + $4,830

Visit the EX DeFi mining platform to view more details on mining contracts and returns.

What to watch next for XRP?

Following a recent rapid surge and a leverage flush-out, the XRP market is entering a phase of new equilibrium. In the short term, whether the price can firmly re-establish itself above $1.40 and whether ETF inflows resume growth will be key factors influencing market sentiment. In the medium to long term, the development of the XRPL ecosystem, institutional adoption, and the regulatory environment for digital assets remain areas worth continued attention.

For XRP holders, market volatility brings both risk and potential opportunities for asset reallocation. Beyond monitoring XRP price trends and ETF capital flows, investors can also explore avenues like EX DeFi cloud mining to generate diversified returns on their assets.

For more details, please visit: https://exdefi.com/