XRP Longs Get Wiped: Binance Leads $5M Liquidation Wave

XRP is attempting to reclaim the $2 mark after a sharp breakdown that briefly dragged the price toward the $1.85 level. While bulls are trying to stabilize the move, the broader market remains under pressure as macroeconomic uncertainty rises and analysts continue to warn that crypto could be entering a deeper bear market phase. In this environment, volatility is being amplified by leverage, and XRP’s derivatives market has become a clear battleground.

A CryptoQuant report highlights how January 18 delivered one of the most painful sessions for leveraged XRP traders this month. Data from the XRP Exchange Liquidation Metrics shows a major wave of forced liquidations hitting long positions across major exchanges, signaling that many traders were positioned too aggressively into the downside move. Unlike trading volume or open interest, liquidation data reflects positions being closed involuntarily, meaning traders were wiped out rather than choosing to exit.

Total long liquidations reportedly exceeded $5 million on the day, marking a standout liquidation cluster for January. Binance played a dominant role in the flush, accounting for roughly $1.05 million in long liquidations, reinforcing its position as a key venue driving XRP’s short-term volatility.

The CryptoQuant report suggests that XRP’s liquidation spike on January 18 was not purely technical, but part of a broader macro-driven risk-off move that hit the entire crypto market at once. Instead of a slow bleed, the sell-off looked like a synchronized shock, where traders across multiple assets were forced to reduce exposure as uncertainty surged in global markets.

According to the report, the trigger came from geopolitical and trade-war rhetoric. Financial Times reported that European capitals may respond to US pressure over Greenland by considering tariffs worth up to €93 billion ($107.7B), or even restricting US companies’ access to the EU market. Even without immediate policy action, the headline alone was enough to revive fears of renewed transatlantic escalation.

Markets typically treat these events as liquidity threats. When tariffs and retaliation enter the narrative, traders begin pricing in slower growth, tighter financial conditions, and more volatility. Crypto, still behaving as a high-beta risk asset, tends to react fast.

Bitcoin’s drop from above $95,000 to below $93,000 added fuel to the fire, reinforcing downside momentum across altcoins. In XRP, that pressure quickly turned into forced selling, as leveraged longs were liquidated into a falling market rather than exiting voluntarily.

XRP is attempting to stabilize after a violent downswing that pulled the price back into the $1.85–$2.00 zone. The daily chart shows a clear rejection from the recent rebound high near $2.40, followed by an aggressive selloff that erased most of the breakout attempt. XRP is now trading around $1.97, hovering just below the psychological $2 level. Which has turned into a short-term momentum pivot.

From a market structure perspective, the trend remains pressured. Price continues to trade under the major moving averages, with the faster average rolling over and acting as dynamic resistance. The mid-term curve is also sloping downward, reinforcing the idea that rallies are still being sold rather than held. This aligns with a broader pattern of lower highs since the October peak. Suggesting that the market is still in a corrective phase.

The wick structure and repeated failed pushes toward the $2.20–$2.40 region show sellers defending that supply zone aggressively. At the same time, buyers are taking action near $1.85, forming a visible demand floor that has held through recent volatility.

For bulls, reclaiming $2.10–$2.20 is the first step toward recovery. Otherwise, another breakdown toward $1.85 remains a valid risk.