XRP News Today: XRP's 'Black Swan' Crash: $707M Liquidations and a Surprising Rebound

The XRP token experienced a historic flash crash on October 10, 2025, plummeting 56% from $2.83 to $1.25 within hours, triggering over $707 million in liquidations, according to CoinGlass data . The collapse, attributed to high leverage and thin liquidity, marked XRP's steepest single-day decline in years and became one of the most volatile trading days in crypto history. Over $615 million in long positions were wiped out as traders were caught off guard by the sudden sell-off, which coincided with broader market turmoil wiping $19 billion in crypto positions and $1.65 trillion from U.S. stocks .

Market analysts highlighted the role of leveraged trading in amplifying the crash. Zaheer Ebtikar of Split Capital noted that the initial phase of a crash typically involves "market bleeding," where liquidation orders flood exchanges, pushing prices lower. This was evident as XRP and other altcoins like Solana and Dogecoin hit multi-month lows . Market makers, key liquidity providers, temporarily paused operations to address price discrepancies between spot and futures markets, prolonging the stabilization process .

The crash was exacerbated by macroeconomic factors, including President Donald Trump's announcement of 100% tariffs on Chinese goods, which rattled risk assets and fueled selling pressure . Community analyst Chad Steingraber labeled the event an "XRP Black Swan," emphasizing the unprecedented scale of liquidations . Despite the panic, XRP rebounded swiftly to $2.40, with some observers attributing the recovery to large buyers absorbing panic selling .

Technical analysis suggests XRP's resilience may persist. Patrick Riley, a prominent investor, projected that a close above $3.115 by October 13 could result in XRP's most bullish weekly candle ever . From a $1.25 low, XRP had already doubled in value, reinforcing bullish sentiment despite a 12% 24-hour decline. However, the token slipped to fifth in market capitalization, valued at $147.5 billion, trailing BNB's $157.7 billion .

High leverage and overbought conditions remain risks. Data from Coinglass revealed that XRP's open interest dropped from $8 billion to $5 billion during the crash, signaling rapid unwinding of leveraged positions. Derivatives volume surged to $23 billion, reflecting traders' attempts to hedge or capitalize on volatility . Analysts warn that further corrections could occur if XRP fails to hold key support levels, such as $2.73, which is critical for a rebound to $3.10 .

The long-term outlook for XRP hinges on regulatory developments. Polymarket odds of an XRP ETF approval rose to 96%, with potential approvals expected by October . Institutional adoption of Ripple's On-Demand Liquidity (ODL) service and the XRP Ledger's expansion into decentralized finance (DeFi) also offer growth catalysts . However, U.S. political uncertainty and global trade tensions could delay regulatory clarity, prolonging market volatility .

[1] Coinedition.com (https://coinedition.com/how-xrp-lost-half-its-value-and-still-bounced-back-within-hours/)

[2] Coindesk.com (https://www.coindesk.com/markets/2025/10/11/v-shaped-rally-or-gradual-reset-btc-eth-xrp-sol-face-slow-bottoming-process-after-usd16b-liquidation-shock)

[3] BeInCrypto.com (https://beincrypto.com/xrp-700-million-liquidation-analysis/)

[4] Elevenews.com (https://elevenews.com/2025/10/09/xrp-navigates-volatility-2-73-support-in-focus-as-liquidations-reshape-crypto-markets/)

[5] crypto.news (https://crypto.news/xrp-price-flash-crash-triggers-75m-liquidations-will-it-rebound/)