Key takeaways
Has XRP suffered a major liquidation event?
Over $610 million in long positions were liquidated on October 11, the largest in XRP history.
Is the XRP market recovering from the crash?
Open interest and funding rates are stabilizing, but price developments remain cautious and volatile.
Ripple’s XRP is making a strong comeback after one of its worst wipeouts in months.
More than $610 million in long positions were liquidated on October 11 on major exchanges, a shock that some traders called a “black swan” event.
However, buyers aren’t ready to give up just yet.
XRP Liquidation Shakes Traders
The XRP market faced a historic crisis over the weekend, with over $610 million in long positions liquidated across Binance, OKX and Bybit.
This is the largest single-day liquidation event in XRP history.
Source:
Highly leveraged traders were blindsided by a sharp price decline, which triggered a wave of margin calls and stop-loss liquidations.
Despite the turmoil, exchanges like Hyperliquid and Bybit have quickly seen a surge in long-term interest, with traders now betting on a quick recovery, even if short-term volatility remains high.
Futures market stabilizes after crash
After the record liquidation, XRP’s Open Interest (OI) fell sharply from over $2.8 billion to around $1.4 billion as traders rushed to unwind their leveraged positions.
Source: Coinalyse
However, data now shows that OI is stabilizing, so new positions are slowly returning to the market.
Meanwhile, funding rates, which briefly dipped into negative territory during the crash, are moving back toward neutrality. This is a first sign of renewed confidence.
Traders are regaining confidence, even if volatility remains a persistent risk in the short term.
Caution is advised!
At press time, XRP was trading at $2.44, down more than 6% in 24 hours, with its recovery momentum stalling after the liquidation crash.
Source: TradingView
The chart shows a brief surge in volumes during the strong sell-off, followed by a decrease in trading activity – a sign of volatility exhaustion. The RSI was entering oversold territory, while the DMI indicated weak directional strength.
Despite the stabilization, XRP appears to be in a cautious consolidation rather than a decisive rebound.
