XRP Crashes 40% Before Recovering in Largest One-Day Drop

The cryptocurrency market witnessed a significant downturn on Friday, with XRP experiencing its sharpest one-day drop in recent years. The selloff drove the price as low as $1.64 before a partial recovery to $2.36, with volumes surging 164% above the 30-day average.

What Caused the Crash?

The crash was attributed to large-scale liquidations and a significant decrease in futures open interest. Institutional futures open interest decreased by $150 million, highlighting the impact of long liquidations. The cryptocurrency’s price fell from $2.82 to $2.36 between October 10, 01:00, and October 11, 00:00, posting a 16% daily loss.

Key Takeaways

• XRP Price Drop: The cryptocurrency’s price crashed by up to 42% due to large-scale liquidations and a decrease in futures open interest.
• Volume Surge: Trading volumes surged 164% above the 30-day average, indicating forced deleveraging across corporate desks.
• Institutional Interest: Institutional futures open interest dropped from $9.0B to $8.85B, highlighting the impact of long liquidations.
• Whale Activity: 320M XRP was transferred to exchange wallets in the past week, confirming whale distribution pressure.

Technical Analysis

The technical analysis suggests that the support zone around $2.30-$2.35 is crucial for the cryptocurrency’s price. A break below this zone could lead to extended downside risk to $2.22. On the other hand, resistance is layered at $2.84-$2.90, with $3.05 as a macro breakout trigger.

What’s Next for XRP?

The future of XRP depends on several factors, including:

• Regulatory Clarity: The outcome of Ripple’s National Trust charter review and its impact on corporate adoption.
• Market Sentiment: The overall sentiment in the cryptocurrency market and its impact on XRP’s price.
• Technical Indicators: The cryptocurrency’s ability to break above the resistance zone and regain its bullish momentum.

In conclusion, the recent crash in XRP’s price is a significant event that highlights the volatility of the cryptocurrency market. While the cryptocurrency has partially recovered, the future remains uncertain. Investors and traders should keep a close eye on the technical indicators and market sentiment to make informed decisions.

XRP Trading Volume:

• 164% surge in trading volume above the 30-day average
• 817.6M XRP traded in the heaviest liquidation hour (15:00-21:00 UTC)

Institutional Futures Open Interest:

• $150 million decrease in institutional futures open interest
• $9.0B to $8.85B decrease in open interest

The article provides an in-depth analysis of the recent crash in XRP’s price and the factors that contributed to it. It also highlights the key technical indicators and market sentiment that investors and traders should watch out for in the coming days.