XRP Plunges Below $2 Before Recovery After Whales Trigger $21M Long Liquidation Cascade

XRP flash-crashed from $2.82 to $1.64 in hours before rebounding to $2.36 on 164% surge in volume.

Over $21M in long liquidations crushed sentiment, while RSI dipped to multi-month lows near 20.

Whale sell-offs pushed 320M XRP to exchanges, signaling short-term distribution pressure on price.

XRP nosedived over 42% in a sudden selloff, falling below $2 as whales unloaded and $21M in longs were liquidated. Price briefly hit $1.64 before staging a sharp recovery fueled by heavy dip-buying.

Ripple’s XRP Sees Flash Crash, Institutional Exodus

XRP/USDT suffered a violent sell-off between October 10 and 11, plummeting from $2.82 to $1.64 before staging a partial recovery to $2.36. Binance registered a brief wick to $0.77 USDT, amplifying trader fears

The collapse unfolded during a high-frequency liquidation event, as institutional open interest dropped from $9.0B to $8.85B, per Coinglass. Long positions absorbed over $21M in liquidations, dwarfing $2M from shorts.

The pressure intensified as whale wallets offloaded over 320 million XRP into exchanges over the past week. Data from Whale Alert and Santiment confirmed this distribution trend, aligning with declining futures participation. During the steepest hours, trading volumes hit 817.6M in a single window, marking capitulation-grade activity.

Price Reaction and Support Zones

On the weekly chart, XRP broke a multi-year descending bearish technical pattern stretching back to 2018. Elliott Wave labeling (A–E) suggests the corrective phase ended in early 2025, with price surging to $3 and testing resistance at $2.81 — the 0.236 Fibonacci level.

Source: Casi Trades Via X

The bulls will need to close above $2.93 to regain full control the price.

Market Bounce or Breakdown?

If XRP can’t hold the support around $2.30 to $2.35, it could drop further to $2.20 or even $1.80. Volatility is still high, and the low RSI suggests a bottom might be forming, but it’s too soon to say for sure.On the upside, resistance levels are at $2.60 and $2.84. If XRP breaks $3.05 a bigger breakout could be next

Even with the drop, on-chain data shows that long-term holders have been buying below $2.40. Indicating that if open interest rises again and buyers keep pushing above $2.40, XRP could see some short-term gains. For now, the market remains shaky.

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