Rare "flash crash"! XRP plummets 42% in one day, marking the largest drop in recent years, with a $21 million liquidation wave in the derivation market.

In the wave of dumping sweeping the crypto market, XRP experienced its most severe single-day fall in recent years on Friday (October 11), with the price plunging 42% from a high of nearly $2.82 to an intraday low of $1.64, before partially bouncing back and stabilizing around $2.36. This big dump was mainly caused by high-frequency liquidations, erasing up to $21 million in leveraged long positions in the derivatives market. On-chain data shows that “Whales” continue to transfer XRP to exchanges for cashing out, which is a key internal factor leading to the price's vulnerability under macro unfavourable information.

Extreme Volatility and Massive Liquidation: Forced Deleveraging Under Market Panic

· Amazing single-day fall: The price of XRP experienced a severe dumping from 1:00 AM on October 10 to midnight on October 11, with a maximum intraday fall of 43% and a daily drop from opening to closing of 16%. This flash crash brought the price down from about $2.82 to a low of $1.64, after which the price stabilized around $2.36.

· Trading Volume Surge: Market panic has led to a 164% increase in trading volume compared to the 30-day average. Such high activity typically indicates that institutional trading platforms are undergoing forced deleveraging operations. The most intense liquidation period occurs between 3:00 PM and 9:00 PM UTC, during which hourly trading volumes reached as high as 817.6 million.

· Futures Market Update: Institutional futures open interest has decreased from $9 billion to $8.85 billion, a contraction of $150 million, reflecting the scale of leveraged position liquidations. Among them, the total amount of long position liquidations reached $21 million, while short liquidations were only $2 million, clearly indicating that this dumping mainly targeted high-leverage long positions.

On-chain Signals: Continuous selling by whales is the main reason for price weakness.

· Whale Transfers and Cashing Out Pressure: On-chain data shows that 320 million XRP were transferred to centralized exchange wallets in the past week. This large transfer is strong evidence of “Whale” selling or distribution pressure.

· Long-term selling mode: Over the past month, Whale wallets have averaged a daily outflow of 50 million USD in XRP. Since XRP's price broke the 3.60 USD high earlier this year, the 30-day moving average of Whale fund flows has remained in deep negative territory, indicating that large holders have been continuously taking profits during price rebounds. It is this persistent dumping that has caused XRP to exhibit extreme price vulnerability when the market faces macro unfavourable information.

Price Stabilization: The Game of Key Support Levels and the Destruction of Technical Patterns

(Source: TradingView)

End-of-Day Buying Support: In the last 60 minutes of trading, the price slightly rebounded from $2.31 to $2.38, an increase of about 2%. Algorithmic trading broke through $2.35 under the impetus of sustained buying. In the final 15 minutes, the accumulated volume exceeded 12 million, indicating that some long-term holders are actively increasing their positions below $2.40.

Support and Resistance:

· Short-term support: A preliminary support has formed in the range of 2.30 to 2.35 dollars. If the trading volume continues to shrink, the downside risk will extend to 2.22 dollars.

· Short-term resistance: the range of $2.84 to $2.90. To restore the technical structure, the price must close above $2.90.

· Macro breakout trigger point: 3.05 USD.

Technical Pattern Breakdown: This round of big dump has caused XRP's continuous 75-day symmetrical triangle pattern to break downward. The Relative Strength Index (RSI) has fallen to a multi-month low, and the Volatility Bands are expanding, increasing market volatility. Technical analysts point out that previously, in the parallel channel pattern, $2.73 was a key support level, but it has been breached.

Market Focus: Traders are currently closely watching whether the $2.30 support area can attract continued Whale accumulation, and whether open interest can be reestablished after a $150 million contraction in the derivation market. This is crucial for determining whether the XRP price can stabilize.

Conclusion

The “bloody Friday” that XRP experienced is the result of both macro geopolitical risks and internal Whale selling pressure, reflecting the vulnerability of the leveraged market during extreme events. Although the price stabilized towards the end of the day, and long-term holders showed a willingness to accumulate at low levels, the substantial liquidations and the damage to key technical patterns still remind investors to remain vigilant. In the coming days, whether XRP can establish a bottom above the support range of $2.30 to $2.35, and attract the return of open contracts in the derivation market, will be key to determining its short-term fate.

Disclaimer: This article is news information and does not constitute any investment advice. The crypto market is highly volatile, and investors should make cautious decisions.