Over $980M Wiped Out in 24 Hours As XLM, IP, and XRP Face Massive Liquidations

The overall liquidations of over 980 million incurred within 24 hours as XLM, IP, and XRP plummeted.

The incident points to fundamental weaknesses within the altcoin market as regulatory and macroeconomic pressure continue to increase.

Market analysts advise caution, particularly within high-leverage conditions in which minuscule movements could create enormous sell-offs.

The cryptocurrency market was hit by a sharp drop in the last 24 hours, wiping out more than $980 million worth of leveraged wagers. Among the worst-hit assets are Stellar (XLM), Story (IP), and Ripple (XRP). These three tokens—each dominant in their respective blockchain niche—experienced breathtaking losses as investors desperately closed out positions with falling prices and soaring volatility. Market watchers observed an unusual surge in liquidations that cut across both long and short positions, constituting one of the fiercest one-day shakeouts in months.

Stellar (XLM) Faces Groundbreaking Liquidation Spike Amid Macro Uncertainty

Stellar (XLM) led the sell-off with one of the most severe liquidation levels recorded on major exchanges. In the span of a few hours, XLM’s price plunged below key technical support, triggering automatic closures of leveraged positions. This fall coincided with global investor anxiety around inflation and interest rates, which has made risk assets increasingly vulnerable. XLM’s decline was particularly steep given its previously strong position among cross-border payment tokens

Analysts noted that the coin's failure to hold above its 30-day moving average made it a prime target for algorithm-driven liquidations. The correction raises broader concerns about investor confidence in Stellar’s utility-driven narrative, especially as competition intensifies in the payments blockchain sector.

Story(IP) Suffers Unmatched Downturn Amid Low Liquidity Pressure

Story (IP), a relatively new token with promising network infrastructure ambitions, also endured a significant blow during the liquidation cascade. The asset’s fall was fueled by its thin liquidity profile and rising exposure to short-term speculative trading

IP had recently gained traction for its innovative network layer design, but the absence of long-term holders and high token velocity made it susceptible to quick drops. The liquidation of IP is seen by analysts as part of a broader trend where newer assets, even those with superior architecture, are being repriced sharply in volatile markets. As one of the more dynamic tokens in recent weeks, its sharp reversal shows how fast sentiment can shift when the market turns risk-averse.

XRP’s Phenomenal Drop Signals Weak Technical Foundation Post-Rally

Ripple (XRP), long considered to be among the best of the market's digital assets, was not left behind in the sell-off. The token saw a spectacular collapse following a multi-week rally that did not withstand.

The liquidation erased recent gains and destroyed key support levels at the $0.42 mark. According to technical analysts, insufficient follow-through buying and spot trading volume declines assisted in accelerating the liquidation of long positions. The fall of XRP serves as a reminder that even high-quality tokens with excellent use cases are not immune to high-leverage risks.

Market Outlook Remains Cautious After Massive Liquidation Wave

The liquidation of nearly $1 billion across XLM, IP, and XRP has put traders and institutions on high alert. Some look at the correction as healthy and needed to recalibrate the market, but there are warnings of vulnerability in the market still. The incident underscores the fine lines between market exuberance and massive sales of the existing macroeconomic climate. In the future, crypto traders are likely to lessen leverage and watch liquidity more closely, particularly in altcoins lacking market profundity or duration viability.