XRP (XRP) Slips to $1.34 as $369 Million Long Squeeze Hits Leveraged Traders

$369 Million Long Squeeze

September opened on a defensive note for altcoin traders, and XRP (XRP) was among the assets caught in the downdraft. The token slipped 2.29% to roughly $1.33 on Wednesday, September 2, as a derivatives-market long squeeze erased $369.67 million in leveraged positions across the major assets. Liquidation heat map data shows $301.84 million of that total came from longs, while shorts absorbed $67.83 million, and exchanges closed out more than 90,000 traders — $141.44 million of the forced exits landed inside a single 12-hour stretch. Bitcoin slid toward the $77,200–$77,600 zone and Ether dropped about 2% into the $2,410 range, pulling total crypto market capitalization down to roughly $2.59 trillion and widening slippage for anyone exiting size into the cascade.

The trigger sat outside crypto. WTI crude climbed above $90–$92 per barrel while the 10-year Treasury yield reached cycle highs near 4.78–4.79%, lifting market-implied odds of a Federal Reserve rate hike on September 16 to 66% — a mix that historically drains demand from risk assets. XRP also carried idiosyncratic supply pressure: the retreat came amid Ripple's scheduled monthly escrow unlock, even though the surrounding backdrop was not uniformly bearish. Goldman Sachs has joined the ranks of large XRP holders, and US spot XRP ETFs extended their streak with roughly $170 million in net inflows across 11 consecutive sessions, while Bitcoin ETFs bled out and regulated Ethereum, Solana and XRP funds stayed in positive territory through the decline.

Regulators were busy as well. The SEC proposed a full modernization of transfer agent rules to cover public blockchains, tokenized stocks and artificial intelligence — a move that preempts Congress's pending market-structure bill and tees up a September 17 roundtable with BlackRock, Nasdaq, NYSE and Robinhood on around-the-clock stock trading.

CLARITY Act Vote on September 15

Legislative timing now competes with macro data as XRP's dominant price driver. The US Senate will hold a procedural cloture vote on September 15 to decide whether debate on the CLARITY Act advances — a threshold that requires 60 votes and, on the current seat split, bipartisan backing. Coinbase CEO Brian Armstrong has renewed his push for passage before lawmakers leave for recess, arguing most banks now see digital assets as an opportunity rather than a threat, though large banking lobbies still fear stablecoin rewards could pull customers away from traditional institutions. The bill would divide digital-asset oversight between the SEC and the CFTC and set registration requirements for trading platforms; the House passed its own version last July, but differences with the Senate draft stalled the process ahead of the August recess.

Flows and positioning tell a more nuanced story. Spot XRP ETFs took in $14.38 million on September 1, led by Franklin with $6.63 million, Grayscale with $4.72 million and Canary with $3.03 million, while Bitwise and 21Shares recorded no new money — cumulative net inflows stand at $1.68 billion, and the funds' net assets of $1.44 billion equal about 1.69% of XRP's market capitalization. In the futures market, volume rose 20.53% to $3.85 billion even as XRP open interest fell 3.05% to $3.03 billion — a pattern consistent with traders cutting leverage rather than adding it. Options activity surged hardest: volume jumped 119.68% to $2.75 million and options open interest edged up 3.57% to $78.15 million. Commentary framing the vote maps the levels: a successful cloture could see XRP attempt a break above $1.40, then $1.50 and $1.60, with $1.75 conditional on a broader market recovery — while a stalled bill risks a return to the $1.25 and $1.20 support zone. Readers tracking the market in real time can follow live spot and futures prices on MEXC.

$1.29 Support Is the Line to Hold

COINOTAG's proprietary 42-indicator composite S/R scoring engine places XRP at $1.3430, down 2.60% over 24 hours — pinned directly at the $1.3430 resistance, which the engine rates 84/100 on a confluence of the Ichimoku Kijun, Fibonacci 0.500 and a bearish MACD cross. Beneath, the $1.2910 support scores 97/100 (flip R→S, Fibonacci 0.618, lower ATR band, Supertrend); a daily close below it would invalidate the recovery thesis and open the $1.1596 level at 75/100. Positioning remains long-skewed: funding is positive at 0.0059%, open interest near $901.6 million, and the long/short account ratio reads 2.83 (73.9% long), with the Fear & Greed Index at 63 (Greed). A reclaim of $1.3430 targets $1.4272, scored 78/100 on the high-volume node, point of control and upper Keltner band.