Key Takeaways:
- Crypto market has entered the bearish phase, recording a significant price decline mainly in ETH and XRP, down ~3.4% and ~12.5% respectively.
- The massive pullback saw a total of $735 million in liquidations, with a majority of long positions reaching almost $630 million affected.
- Short-term exhaustion signals, including negative RSI and price rejection near resistance, suggest a deeper pullback may follow.
Crypto market made a sharp pullback on Thursday, resulting to nearly $735 million in liquidation, amplifying the downward momentum. Ethereum (ETH) fell ~4% in the past 24 hours, trading at ~$3,632 as of writing while Ripple (XRP) saw a sharp 24H decline of ~12.5%, with price currently trading at roughly $3.11. However, Bitcoin (BTC) was relatively steady at $118,555, with 24H gain of approximately 0.2%.
Meanwhile, in Coindesk’s recent data report, ETH traders saw roughly $152.78 million in liquidation the largest for any asset, followed by XRP with $88.58 million in liquidations. BTC also reached $65.29 million in liquidation, even with its deeper liquidity and larger market cap. Wiping out the long positions mainly in these three tokens made most impact to the massive liquidation.
As observed, most of the price action across the majors are down by only a few percentage points. However, the high leverage used by retail traders especially in altcoins is the reason for such a massive loss, totaling to roughly $625.5 million of liquidations, particularly in long positions. This is a clear demonstration of increasing number of bulls after weeks of upward momentum of the crypto market.
What Analysts Are Saying
CryptoQuant Head of Research Julio Moreno warned that top altcoins including ETH and XRP “may see a correction in the short-term” following their recent rallies, according to DeCrypt. He highlighted that ETH’s order book shows significant sell orders clustered within ~10% of current price, suggesting pressure ahead.
On the other hand, Tristan Teo, founder of Elfa AI emphasized growing ask skew, hinting a likely local reversal for ETH. Meanwhile, XRP failed to hold above resistance around $3.66, triggering a retracement to its next support at $3.34. Technical indicators including RSI show bearish momentum, reinforcing downside risk.
Market Impact
After recent gains from $3,000 to $3,800, ETH saw a significant pullback to roughly $3,505, followed by a daily RSI decline into mid-40, suggesting it’s entering a cooling phase. The second-largest cryptocurrency is trading $3,632 as of writing with, still, a 24-hour loss of 0.9%.
XRP, on the other hand, saw a sharper decline, sliding from ATH (all-time high) $3.66 to $2.95, suggesting a increased volatility surrounding ETF speculation and profit-taking. The token is currently trading at $3.11 a daily loss of roughly 10.1%.
Meanwhile, BTC exhibits the modest decline with its relative stability that has underscored capital rotation out of riskier altcoins, amplifying altcoin corrections. The token currently trades at $118,555, with 24H gain of approximately 0.2%.
What’s next?
Watch for XRP to stabilize above $3.30–$3.40 and ETH to hold above $3,500. If these levels fail, the consolidation could stretch into $3,200s. On-chain signals (funding rates, liquidation flows) and macro shifts (Fed commentary) will likely steer price direction in the coming days.
Summary
Ethereum and XRP led a sharp altcoin correction on July 24, triggering $735 million in crypto liquidations. ETH fell to ~$3,632 and XRP to ~$3.11, wiping out over $240M in long positions between them. Analysts cite exhaustion signals like negative RSI, clustered sell orders, and failed resistance breaks. While BTC stayed relatively stable, its dominance increased as capital fled from riskier altcoins. The drop follows weeks of bullish momentum and excessive leverage, with experts warning of further pullbacks if key support levels break. Investors now watch $3,500 (ETH) and $3.30 (XRP) for stabilization.
