XRP Token Sees 67.5% On-Chain Surge as $8M in Shorts Get Liquidated

Today’s XRP news highlights the token’s rally amid a broader market uptrend. This momentum has sparked a notable surge in network activity. Additionally, the rise in activity was accompanied by a sharp increase in XRP price. This, in turn, has caused a large number of investors with XRP short positions to lose part of their capital and be liquidated. As such, it seems that with an increase in activity, investors have also regained confidence in the XRP token. 

What Caused the $8 Million Loss for XRP Shorters?

Based on the reports, we saw a 67.50% surge in XRP network activity. In this surge, the active users went from 27,352 to 40,366 over the previous few days. Such an increase usually means that user interest in the blockchain is growing. Additionally, such growth has historically led to continued momentum. Moreover, with increased on-chain participation, the XRP blockchain also becomes more attractive to new investors. As such, this cycle can sustain and enhance price performance and network activity. 

The increase in XRP network activity was also accompanied by a major loss for XRP shorters. The market data has revealed that as the XRP price rallied to $2.20 and went past this point, the shorts got liquidated. The exact amount that investors with XRP short positions lost was nearly $8 million. Such a large loss was also caused by some traders having leveraged positions, which increases both the gains and the losses. Market data shows the leveraged traders from Binance and Bybit saw the biggest losses in this surge. 

Are Investors Misjudging XRP Token Market Momentum?

Based on the market data, the investors with XRP short positions on Binance suffered nearly $633K of liquidations. This number for Bybit users was much bigger, as short sellers lost almost $1.82M of their capital. As these numbers point out, many investors had bet against the XRP market, which was a sign of a bearish sentiment. Additionally, as the rally in XRP value continues, there are more people who will probably be forced to buy back.

Is XRP Starting a Massive Bull Run?

After a period of calm and consolidation in the price action, the XRP token now seems to be experiencing a bullish sentiment. As momentum keeps building, the value of XRP seems to continue its upward movement. The movement started when XRP broke through the $2.10 resistance and is gaining strength at the current $2.22. Additionally, we can see that the price action is continuously making new highs and higher lows. Such movement is accompanied by an increase in the volume of bullish movements, showing an increase in confidence. 

XRP/USD daily chart, published on TradingView, April 23, 2025

Based on the XRP/USD daily chart, the Relative Strength Index is sitting at 66, and the RSI Moving Average is at 68. As such, although the volume of the bullish trades is high, the RSI has not entered the overbought zone of above 70. The ADX is also showing a strong ongoing trend as it is hovering at 54. An ADX score above 25 means a strong ongoing trend; however, above 50 signals a really strong trend. As the bullish momentum continues, traders should always remember that the current market is very volatile. As such, the possibility of a bearish reversal or bearish movement is still high. 

Will Economic Instability Derail XRP Momentum?

With such a bullish market performance, the continuation of the current price movement is likely. Additionally, with new positive XRP news coming out daily, we could even expect a further increase in trend strength. However, the broader economic circumstances have been somewhat unpredictable recently. As such, traders should pay closer attention to such developments, causing bearish sentiment for the XRP token.