As XRP plunged to as low as $1.38, the 1-hour liquidation imbalance topped 10,535 percent, blockchain outlet U.Today reported on Sunday.

In an unusual move, the scale of forced liquidations in long positions exceeded losses on short positions by more than 100 times in a short period.

The volatility began during the U.S. Labor Day holiday period as XRP retreated from an intraday high of $1.4150. As XRP/USD fell quickly, stop-loss orders and margin liquidations by high-leverage traders were triggered in a chain reaction. Market attention focused on daily losses of $10.72 million in bitcoin and $4.55 million in solana, but XRP saw a separate, sharp liquidation that shook the order-book structure.

The key was the concentration of long positions. XRP had approached around $1.4368, the monthly maximum pain zone for shorts. As market participants built excessive long positions in expectation of a break above that level, orders sensitive to small price swings clustered to one side. As selling pressure grew, a long squeeze unfolded aggressively.

The current price is 3.94 percent below the maximum pain zone for shorts. In that zone, $9.2 million worth of bearish positions could be liquidated. By contrast, the maximum pain zone for longs of $0.9837 is 28.83 percent below the current price, with potential liquidations put at $24.29 million. Based on the figures alone, the drop is read as a signal closer to a local shakeout than a shift in the overall trend.

Exchange reactions were mixed. Open interest fell 5.16 percent on KuCoin and 4.07 percent on Gate, showing net outflows. MEXC and Bybit, meanwhile, emerged as hubs where speculative demand concentrated. MEXC's daily trading volume in particular jumped 118.32 percent as buy-the-dip orders came in while liquidations were under way.

That buying pushed XRP back up to $1.3892. After rebounding from the low, XRP formed a reversal pattern on lower time frames, and technical indicators also moved out of oversold territory, signaling short-term strength. It is still too early to conclude that the buying has led to a trend reversal.

In the short term, $1.4010 was presented as the immediate resistance. If buying breaks above that level, it could signal confirmation that a minor bearish micro-trend formed in the evening has ended. If it fails to break through, this rebound could still remain a technical pullback after liquidations.

The move showed how one-sided leverage positioning can amplify market shocks more than the size of the price drop itself. XRP saw a wave of long liquidations in a short time, revealing anomalies in market microstructure, and some exchanges later saw immediate inflows of buy-the-dip money. Going forward, whether $1.4010 is reclaimed and how much sell and buy positioning builds again near $1.4368 will remain factors shaping the short-term direction.