XRP Plunges 42% to $1.64 Before Partial Recovery to $2.36

XRP experienced a sudden and severe selloff early Friday, collapsing to a low of $1.64 within hours as traders rushed to unwind heavily leveraged positions. Market data reveals that this rapid descent was triggered by automated liquidation engines executing stop-loss orders in futures markets, amplifying downward momentum in a cascade of forced sales.

On-chain analytics show that approximately 320 million XRP tokens were transferred to exchange wallets during the 24-hour period encompassing the crash, indicating significant distribution from large holders. Trading volumes surged to over 12 billion XRP, representing a 164% increase above the 30-day average and highlighting the intensity of market activity during the downturn.

Futures open interest data from leading derivatives platforms indicates a contraction of $150 million in long positions, underscoring the magnitude of leveraged bets that were liquidated. Short positions remained comparatively stable, suggesting that long-side pressure drove the bulk of the decline. These figures reflect elevated risk in futures markets when high leverage coincides with abrupt shifts in sentiment.

Technical support was observed around the $1.65 mark, where algorithmic market makers and institutional liquidity providers intervened to absorb sell orders. This defensive buying facilitated a partial recovery, driving the price back to $2.36 by late session trading. Resistance is now positioned near $2.40, with a break above that level required to shift market bias back toward bullish territory.

Looking ahead, market participants will monitor on-chain indicators for whale accumulation patterns and shifts in derivatives positioning to gauge the durability of the rebound. Regulatory developments in the United States and broader macroeconomic conditions, including evolving U.S.-China trade dynamics, will continue to influence XRP volatility in the coming sessions.