Dogecoin and XRP Dip as Crypto Market Sees Over $500 Million in Liquidations

2025-08-19

The crypto market faced another volatile session as Dogecoin (DOGE) and XRP prices fell amid a broader sell-off that triggered over $500 million in liquidations within 24 hours.

This wave of forced selling came alongside Bitcoin and Ethereum declines, signaling a risk-off sentiment across digital assets.

With inflation data pressuring risk markets and traders engaging in heavy profit-taking, both Dogecoin and XRP broke through key support levels.

While short-term technicals point to bearish pressure, accumulation by larger holders suggests potential recovery zones may be forming.

Dogecoin Price Struggles Amid Profit-Taking and Market Weakness

As of August 19, 2025, Dogecoin traded near $0.218, down roughly 2.1% on the day. The memecoin continues to reflect volatility, particularly following macroeconomic updates and overall market retracements.

Key drivers of Dogecoin’s decline include:

Profit-taking after recent rallies
Broader crypto market liquidations exceeding $500 million
Declining risk appetite tied to inflation concerns

Despite the dip, DOGE remains widely traded, with strong liquidity and interest from retail communities keeping it in the spotlight.

XRP Slips Below $3 as Profit-Taking Intensifies

XRP dropped around 1.7% to $3.01, breaching the psychologically important $3 level during heightened selling in Asian and European trading hours.

The token had previously surged following Ripple’s legal settlement with the SEC, which fueled record trading volumes.

Factors behind XRP’s recent dip include:

Heavy profit-taking as ~94% of holders were sitting on gains
Ripple escrow releases, adding to circulating supply
Market-wide tremors as Bitcoin slipped below $115,000
Technical weakness with rising short interest and declining open interest

However, analysts highlight that whales and institutions continue to accumulate XRP, with possible support forming around $2.85 and $2.70.

Market-Wide Liquidations Exceed $500 Million

The downturn was part of a broader trend, with over $500 million liquidated across crypto exchanges in 24 hours. Both Bitcoin and Ethereum saw declines, dragging altcoins lower.

This pattern points to a combination of leveraged trading wipeouts, macroeconomic caution, and investor rebalancing after strong rallies.

Whale Accumulation Signals Longer-Term Confidence

While retail traders exit positions, whale and institutional buying suggests confidence in medium- to long-term recovery. This quiet accumulation phase often precedes renewed uptrends once selling pressure eases.

For traders, the current consolidation could serve as a key phase before direction becomes clearer in the coming weeks.

Final Thoughts

The recent dips in Dogecoin and XRP reflect a risk-off market environment, widespread profit-taking, and macroeconomic headwinds. With over $500 million in liquidations, the crypto market faces near-term volatility, but underlying whale accumulation suggests longer-term resilience.

For investors, keeping an eye on support levels and broader macro trends will be critical in navigating the next phase of price action.

FAQs

Why did Dogecoin drop today?

Dogecoin fell about 2% due to profit-taking, risk-off sentiment, and broader crypto liquidations.

Why did XRP fall below $3?

XRP dipped under $3 amid profit-taking, Ripple escrow releases, and overall market weakness.

How much was liquidated in the crypto market?

Over $500 million in crypto positions were liquidated within 24 hours.

Are whales buying XRP during the dip?

Yes, large holders and institutions continue to accumulate XRP despite short-term selling.

What are key XRP support levels to watch?

Analysts highlight $2.85 and $2.70 as critical potential support zones.

xrp XRP

Disclaimer: The content of this article does not constitute financial or investment advice.

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