XRP experienced a dramatic 42% collapse during Friday's trading session, marking its most severe single-day decline in recent history as major investors executed widespread liquidations across primary exchanges, resulting in a $150 million reduction in futures open interest.
The intense selling pressure drove XRP's price down to $1.64 before stabilizing around $2.36, with trading volumes skyrocketing 164% above the 30-day average - indicating significant forced deleveraging across institutional trading desks.
Key Market Developments
• XRP declined from $2.82 to $2.36 between October 10-11, recording a 16% daily loss
• Intraday volatility reached extreme levels of 43%, with prices briefly touching $1.64 during high-frequency liquidation events
• Institutional futures open interest decreased from $9.0B to $8.85B as long position liquidations reached $21M compared to $2M in short liquidations
• 320 million XRP tokens were transferred to exchange wallets over the past week, confirming substantial distribution pressure from large holders
• Late-session buying activity stabilized prices near the $2.35-$2.40 range, with accumulation volumes exceeding 12 million tokens in the final 15 minutes
Market Context
• Ripple's ecosystem confronts multiple challenges including global trade tensions, divergent central bank policies, and uncertainty regarding US digital banking licenses
• The October 7th deadline for Ripple's National Trust charter expiration has increased regulatory risk premiums for XRP-linked institutional products
• Despite the significant price decline, on-chain data reveals long-term investors accumulating positions below $2.40, suggesting strategic portfolio repositioning
Trading Activity Overview
• XRP opened near $2.82 before experiencing aggressive selling pressure throughout the session, breaking through critical support levels at $2.70 and $2.50
• The most intense liquidation period occurred between 15:00-21:00 UTC, when hourly volume reached 817.6 million tokens
• The $1.64 low potentially represented a market capitulation point, with the recovery to $2.36 encountering resistance around $2.84
• The final trading hour witnessed stabilization from $2.31 to $2.38 (+2%), as algorithmic trading broke through $2.35 on sustained bid activity
Technical Perspective
• Support: Established between $2.30-$2.35; extended downside risk to $2.22 if volume diminishes
• Resistance: Multiple layers between $2.84-$2.90, with $3.05 serving as a macro breakout trigger
• Volume: Increased 164% compared to 30-day average - indicating capitulation-level turnover
• Trend: 75-day symmetrical triangle pattern broken to the downside; requires close above $2.90 to restore bullish structure
• Momentum: RSI approaching multi-month lows; expanding volatility bands signaling potential base formation
Market Focus Areas
• Whether the $2.30 support zone will attract consistent accumulation from major investors
• Recovery of open interest following the $150 million contraction in derivatives markets
• Regulatory developments post-Ripple charter review and their impact on corporate adoption
• Potential spillover effects from Bitcoin's $125,000 rally - possible rotation back into XRP
• Technical confirmation above $2.90 needed to invalidate short-term bearish sentiment