XRP, the native token of Ripple, experienced one of its most volatile trading days in history on October 10, 2025, with a 56% plunge from $2.83 to $1.25 before staging a partial recovery. The crash triggered record liquidations, erasing $707 million in positions, according to CoinGlass data. Over $615 million in long positions were wiped out as traders scrambled to cut losses amid a broader crypto market rout that saw $19.5 billion in total liquidations. The sell-off was fueled by U.S. President Donald Trump's announcement of a 100% tariff on Chinese imports, reigniting fears of a trade war and triggering a global risk-off sentiment.
Analysts have labeled the event a "Black Swan" for XRPXRP--, with community figure Chad Steingraber emphasizing that the liquidation wave marked a historic inflection point. Despite the chaos, the token's resilience shone through as it rebounded to trade around $2.40 within hours, with some long-term holders attributing the bounce to institutional buying absorbing panic-driven selling. Veteran trader Peter Brandt, who had predicted a drop to $2.22, claimed profits after the correction, though critics argued his success was more luck than skill. Meanwhile, investor Patrick Riley remained bullish, suggesting XRP could form its most bullish weekly candle ever if it closes above $3.115 by Sunday.
The broader market impact extended beyond XRP. The crypto market cap fell below $4 trillion, with BitcoinBTC-- and EthereumETH-- also reeling. Total liquidations across major exchanges hit $19.5 billion in 24 hours, the highest on record. XRP's market capitalization dropped to $147.5 billion, pushing it to fifth place behind BNBBNB--, though it still ended Q3 with a 27% gain from Q2. Analysts noted that XRP's historical performance in Q4-averaging 140% gains-could fuel another rally, contingent on regulatory developments like a potential spot ETF approval.
The aftermath of the crash has left traders divided. While some view the sell-off as a "reset" for a new bull run, others warn of prolonged volatility. Zaheer Ebtikar of Split Capital outlined a multi-step bottoming process, including market-maker pauses, data-feed stabilization, and gradual absorption of liquidation orders. With XRP trading at $2.46 as of October 11, the token faces key resistance at $3.05. A close above this level could signal a structural recovery, though macro risks-particularly U.S.-China trade tensions-remain a wildcard.
Source: [1] XRP Crashes 56% As $700M Liquidated: What's Next? (https://coinedition.com/how-xrp-lost-half-its-value-and-still-bounced-back-within-hours/)
[2] Expert Says 'XRP Black Swan' Made History as XRP Loses 1.27 ... (https://thecryptobasic.com/2025/10/11/expert-says-xrp-black-swan-made-history-as-xrp-loses-1-27-dollars/)
[3] Crypto News: Flash Crash Triggers Largest Crypto Liquidation ... (https://www.thecoinrepublic.com/2025/10/11/crypto-news-flash-crash-triggers-largest-crypto-liquidation-event-in-history/)
[4] Why Bitcoin Price, Ethereum, XRP, SolanaSOL--, Other ... (https://www.thecoinrepublic.com/2025/10/10/why-bitcoin-price-ethereum-xrp-solana-other-altcoins-are-suddenly-falling/)
[5] BTCBTC--, ETH, XRP, SOLSOL-- Face Slow Bottoming Process After $16B ... (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)
[6] XRP Rebounds Sharply After 41% Flash Crash, Reclaims $2.47 ... (https://uk.finance.yahoo.com/news/xrp-rebounds-sharply-41-flash-165535867.html)
[7] Why Is Crypto Down: Bitcoin (BTC) Down 10%, ETH, XRP, SOL in (https://www.coindesk.com/markets/2025/10/10/bitcoin-crashes-below-usd110k-cryptos-in-freefall-on-further-trump-tariff-on-china)
[8] XRP(XRP) Liquidations Data, Crypto Liquidations, Real-Time ... (https://www.gate.com/crypto-market-data/funds/liquidation/xrp)
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