by XRP, the digital asset associated with Ripple, experienced a drastic decline, crashing as much as 42% on Friday, marking its sharpest one-day drop in recent years. This significant selloff was characterized by large sell orders from crypto whales and a notable reduction in futures open interest, amounting to $150 million. By the end of the trading session, XRP managed to recover partially, closing at $2.36 after hitting a low of $1.64. The trading volume surged to an astonishing 164% above its 30-day average, indicating forced deleveraging across various trading desks.
Key Takeaways from XRP’s Price Drop
- XRP’s price fell from $2.82 to $2.36 between October 10, 01:00 UTC and October 11, 00:00 UTC, resulting in a 16% loss for the day.
- Intraday volatility peaked at an alarming 43%, with prices briefly dropping to $1.64 during intense liquidation sweeps.
- Institutional futures open interest decreased from $9.0 billion to $8.85 billion, with long liquidations hitting $21 million compared to $2 million in shorts.
- In the past week, 320 million XRP were transferred to exchange wallets, indicating significant whale distribution pressure.
- Late-session buying activity helped stabilize the price around $2.35–$2.40, with accumulation volumes exceeding 12 million XRP in the final 15 minutes of trading.
Background Factors Impacting XRP
The Ripple ecosystem is currently facing a myriad of macroeconomic and structural pressures. Global trade tensions, diverging central bank policies, and uncertainty surrounding U.S. digital banking licenses are creating an unstable environment for XRP and its institutional products. Additionally, the recent passing of Ripple’s National Trust charter deadline on October 7 has heightened regulatory risk premiums associated with XRP-linked assets.
Price Action Summary: What Happened?
XRP began the day near $2.82 but faced aggressive selling pressure, breaking through critical support levels at $2.70 and $2.50. The heaviest liquidations occurred between 15:00 and 21:00 UTC, with hourly trading volume hitting 817.6 million XRP. The low of $1.64 during this period is considered a potential capitulation point, while the subsequent bounce back to $2.36 faced resistance around $2.84.
During the final hour of trading (23:41–00:40 UTC), XRP saw a stabilization move from $2.31 to $2.38, representing a 2% increase as algorithmic trading strategies pushed the price past the $2.35 mark on sustained bids.
Technical Analysis: What Lies Ahead?
Support Levels: The support zone for XRP is currently established between $2.30 and $2.35. However, there is an extended downside risk to $2.22 if trading volumes decline.
Resistance Levels: Resistance is layered between $2.84 and $2.90, with $3.05 serving as a macro breakout trigger.
Volume Analysis: The trading volume has surged by 164% compared to the 30-day average, indicating capitulation-grade turnover.
Trend Analysis: A 75-day symmetrical triangle has been broken to the downside, with a close above $2.90 needed to regain bullish structure.
Momentum Indicators: The Relative Strength Index (RSI) is hovering at multi-month lows, while volatility bands are expanding, signaling a potential base formation for future price movements.
What Traders Should Watch Going Forward
Traders and investors are keeping a close eye on several key factors:
- Whether the $2.30 support zone attracts sustained whale accumulation in the coming days.
- The rebuilding of open interest following the $150 million contraction in derivatives markets.
- Regulatory clarity post-Ripple charter review and its potential impact on corporate adoption of XRP.
- The cross-asset spillover effect from Bitcoin’s recent $125,000 rally, which may lead to a relief rotation back into XRP.
- Technical confirmation above $2.90 to invalidate any short-term bearish bias.
Conclusion: Navigating the Current Landscape
While the recent drop in XRP’s price has caused concern among traders and investors, there are signs of recovery and accumulation that suggest long-term holders are taking advantage of the dip. As the cryptocurrency market continues to evolve, staying informed and adaptable will be key for those looking to invest in XRP. For more information on how to buy XRP and navigate the cryptocurrency landscape, check out our guides on buying XRP and XRP price predictions.
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