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XRP Plunges 42% as Whales Trigger Massive Liquidations Friday

XRP Plunges 42% Amid Whales’ Sell-Off, Record Liquidations, and Regulatory Pressures

  • XRP experienced a one-day drop of up to 42%, falling sharply in Friday trading.
  • Major holders moved 320 million XRP to exchanges, causing high sell pressure and large liquidations.
  • Futures market open interest decreased by $150 million, with long liquidations totaling $21 million.
  • Trading volume jumped to 164% above its 30-day average as forced selling accelerated the decline.
  • Prices partially recovered to $2.36 after reaching a low of $1.64, and some long-term investors began to accumulate below $2.40.

XRP dropped as much as 42% during Friday’s session, marking its sharpest one-day fall in recent years. The rapid decline was driven by large holders, often called whales, selling their positions across major trading venues. The price fell to as low as $1.64 before rebounding to $2.36 later in the day.

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Throughout this period, trading volume soared to 164% above the 30-day average, showing forced selling and quick liquidations. According to data provided, institutional futures open interest—reflecting outstanding derivative positions—contracted from $9 billion to $8.85 billion, as long-liquidation losses hit $21 million compared to $2 million on short positions.

Market data showed that 320 million XRP tokens were transferred to exchange wallets in the past week. This movement confirmed significant sell pressure from large holders. The heaviest selling occurred in the afternoon and evening, when hourly trading volume climbed above 817 million XRP. In the final minutes of the session, increased buying pushed the price from $2.31 to $2.38, with more than 12 million XRP changing hands.

Ripple, the company connected to XRP, is facing several external challenges including global trade tensions, changing central bank policies, and delays on U.S. digital banking license decisions. The recent deadline for Ripple’s National Trust charter passed on October 7. This increased regulatory risks for XRP-linked institutional investment products. Despite the steep drop, blockchain data indicates some long-term holders have been buying XRP below $2.40, possibly repositioning for value.

Market support is now seen around $2.30 to $2.35, with further downside risk if volumes decrease. Resistance levels are at $2.84 to $2.90, and the overall trend remains negative unless XRP closes above $2.90. Investors are monitoring whether sustained buying returns to the $2.30 zone and if regulatory clarity could support a recovery in open interest and corporate activity. The full price action and further technical context can be found in the original analysis.

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