XRP under pressure: Are there a threat of massive liquidations in the crypto market?

XRP under pressure: Are there a threat of massive liquidations in the crypto market?

On August 28, 2025, the XRP price remains stable at around $3 as liquidation levels continue to tighten for long and short traders. This creates a tense market situation, which is important for both investors and traders. According to information from InvestX The so-called “max pain” level for short positions is $3.387, which includes a total of $17.9 million in at-risk contracts. The corresponding level for long positions is a current price of $2.953.

A fall below $2.95 could potentially lead to $11.35 million in liquidations, while the XRP price has been fluctuating between $2.80 and $3.20 since August. A downward move below $2.95 could therefore trigger a chain reaction of liquidations. Conversely, a break above $3.30 could result in a short squeeze.

Liquidations and market movements

XRP's market capitalization is currently approximately $178 billion, making it the third largest cryptocurrency after Bitcoin and Ethereum. High volatility could be crucial in the coming weeks as market movements can trigger massive liquidations in derivatives. To minimize risk, traders are advised to hedge long positions with a stop loss below the trend line.

Another point that influences the situation on the market is the Bitcoin price. If this does not break through the $115,200 mark, the XRP price could fall to as much as $2.5. The market is therefore in a dangerous zone with near “Max Pain” levels.

About XRP and Ripple Labs

XRP is a digital asset developed by Ripple Labs, a technology company focused on optimizing global payments. Ripple Labs, founded by David Schwartz, Jed McCaleb and Arthur Britto, began working on the XRP Ledger (XRPL) in 2011, which went live in June 2012. The XRPL provides trust-based validation of transactions to ensure security and speed in the financial sector. The consensus mechanism is resistant to attacks and requires the consent of a sufficient number of validators to validate transactions.

Since 2016, RippleNet has operated a global network of financial institutions using Ripple technology to transfer money. The key issues that RippleNet addresses include speed, security, liquidity management and transparency. With the launch of the On-Demand Liquidity (ODL) feature in 2018, customers can connect two currencies in just three seconds as Ripple works to drive mass adoption of Web3 projects and central bank digital currencies (CBDCs).

In recent years, Ripple has expanded its ODL services to nearly 40 payout regions worldwide, covering nearly 90% of the foreign exchange market. Markus Infanger, VP of Growth at RippleX, emphasizes Ripple's great growth potential in the NFT space and in the entertainment and media sectors. Prospective customers include companies such as Andean Wide, MoneyTrans and many others, all leveraging the benefits of Ripple technology.