XRP crashes leading the crypto market down! $47 million liquidated in a single day, fear index drops to 11

XRP plummeted 24% to $1.17, leading the decline in the crypto market, with $47 million in daily liquidations and trading volume soaring 57% to over $11 billion. The fear index dropped to 11, indicating extreme panic, and market capitalization fell from $4.2 trillion to $2.27 trillion. Evernorth’s holdings are at an unrealized loss of $446 million. Analyst Egrag Crypto warns that if the decline reaches 50-60%, the rebound should be viewed as an exit point.

XRP’s 24% Single-Day Drop Sets Record Among Top 100 Coins

On Thursday, XRP led the crypto market downward, with a 24-hour decline of up to 24%, dropping to $1.17, marking the largest single-day decrease among the top 100 cryptocurrencies by market cap. This Ripple-linked token briefly touched $1.28, the lowest since November 2024. From its high above $3 in October last year, XRP has fallen over 60%, a rare and severe correction among mainstream coins.

This sell-off resulted in $47 million in liquidations of XRP derivatives, nearly $44 million of which were long positions. This data reveals two key facts. First, 94% of liquidations were longs, indicating the market was extremely bullish before the drop, with many investors using leverage to long XRP, which triggered a cascade of liquidations when prices plunged. Second, while the $47 million in liquidations is less than Bitcoin or Ethereum, it is significant for XRP, representing a substantial portion of its daily trading volume.

Meanwhile, total crypto liquidations exceeded $1.4 billion. As volatility intensified, XRP’s trading volume surged 57% to over $11 billion. Such a volume spike usually accompanies sharp price swings, and a single-day volume of $11 billion is an extreme level in XRP’s history, indicating heavy capitulation. This kind of turnover often occurs at trend reversal points but can also be just a panic-driven stop-loss.

Chain Reaction from XRP’s Crash

XRP: Down 24% in 24 hours to $1.17, setting a record for the largest single-day drop among top 100 coins

Ethereum: Dropped to $1,800, down 6%, weekly decline 30%

Dogecoin: Down 8% to $0.09, weekly decline 19%

BNB: Down 9% to $614, weekly decline 23%

Solana: Down 8% to $85, weekly decline 27%

On Thursday, Bitcoin’s price fell below $65,000, and the overall crypto market cap declined 7.7% to $2.27 trillion, after reaching a peak of $4.2 trillion in September 2025. In just a few months, about $1.93 trillion evaporated, shrinking the entire crypto market by 46%. The crypto fear and greed index dropped to 11, in the extreme fear zone. This index considers volatility, trading volume, social media sentiment, and market momentum; lower values indicate greater fear. An 11 reading is among the lowest in recent years, only seen during the Luna collapse in 2022 and FTX bankruptcy.

Evernorth’s $446 Million Loss as a Warning

Evernorth is an XRP asset management firm, with Ripple executives serving as strategic advisors. It currently holds an unrealized loss of $446 million on XRP. The firm spent $947 million in late October to purchase 388,710,631 XRP, and has not bought any other tokens since. Based on recent prices, the XRP holdings are worth about $501 million. Evernorth was established last October, aiming to raise over $1 billion to buy XRP, positioning itself as a dedicated fund management entity for this asset.

Evernorth’s situation reflects the plight of XRP investors. As a professional fund manager with analysts and risk teams, it still bought high and now faces heavy losses—imagine the predicament of retail investors. The firm bought XRP in late October when prices were around $2.4–$2.5, amid high market optimism. Who would have thought that just months later, prices would halve, and $446 million would vanish?

Even more concerning, Evernorth “has not bought any other tokens since.” A key strategy in professional fund management is “cost averaging.” When holdings are at a loss but the long-term outlook remains positive, managers typically buy more at lower prices to reduce the average cost. But Evernorth did not add to XRP when it fell to $1.17, which could mean two things: either their funds are exhausted and they cannot buy more, or they have lost confidence in XRP’s prospects. Either way, it’s a very bearish signal.

On Wednesday, seven US spot XRP ETFs traded $5.9 million, with net inflows of $6.9 million. This is the only small bright spot amid the current dire situation, showing some investors are still bottom-fishing. But $6.9 million in net inflows is negligible relative to XRP’s overall market cap and trading volume, unable to reverse the trend. Ripple Labs CEO Brad Garlinghouse recently discussed efforts to push for the passage of market structure legislation in Congress but has not publicly addressed the reasons for XRP’s price decline.

Egrag Crypto Warns: Rebound Could Be the Last Escape

(Source: Trading View)

Market analyst Egrag Crypto recently pointed out a critical exit candle pattern that could signal a major decision for XRP holders. As volatility increases and downside risks grow, traders are debating whether to hold, sell, or buy more. This week, Egrag Crypto shared a cautious XRP chart analysis on X, emphasizing that if the market is indeed in a bear phase, understanding the upcoming price trend is crucial.

He warns that if traders believe XRP could still fall 50-60%, then the recent price drop and subsequent rebound should be seen as a potential exit point. This judgment is extremely important. A further 50-60% decline from the current $1.17 would mean XRP could reach $0.47–$0.59, which would be catastrophic. If investors believe such an extreme scenario could happen, any rebound should be used to reduce or close positions, not add.

Although Egrag Crypto emphasizes that traders might take the opportunity to push prices higher, he states he will not sell his XRP holdings, even if the price drops below $1. He stresses that unless XRP breaks below the blue support channel on the chart, his strategy remains long-term holding, ignoring market noise. This firm stance reflects the mentality of die-hard XRP believers but may be too aggressive for average investors.

The analyst further notes that XRP’s market structure could soon challenge bearish sentiment and potentially force many traders into panic selling. He mentions external factors such as US regulatory changes that could pose significant risks. Egrag Crypto specifically highlights the possibility of Trump appointing Kevin Warsh as Federal Reserve Chair, replacing Jerome Powell. If that happens, market conditions could worsen further and accelerate downside pressure.

Egrag Crypto emphasizes that his XRP chart analysis aims to help investors who are panicked, confused, or emotionally overwhelmed by recent market downturns and price crashes. He compares crypto investors and traders to athletes in basketball or soccer, calling it a sport that requires skill, preparation, and patience to succeed. Given the 24/7 nature of the market, Egrag Crypto stresses the importance of managing emotions and financial resources, advising traders to step back when necessary to avoid letting assets dominate their emotional state.