XRP News Today: XRP Whales Buy the Dip as Traders Lose $700M in Derivatives Crash

XRP's price experienced a sharp decline in late October 2025, triggering over $700 million in liquidations as traders grappled with a volatile market environment. The token, which had been part of a broader cryptocurrency rally initiated in October 2024, dropped to a six-month low below $2 amid macroeconomic shocks and technical breakdowns. This sell-off was exacerbated by U.S. President Donald Trump's announcement of a 100% tariff on Chinese imports, which triggered a $19.33 billion liquidation event across the crypto market, according to CoinGlass data . XRP's long positions accounted for $600 million of these losses, reflecting the token's heightened sensitivity to leverage-driven volatility .

The price collapse was preceded by a technical warning from veteran trader Peter Brandt, who identified a descending triangle pattern on XRP's chart. Brandt noted that a close below $2.68743 could signal a bearish breakdown, potentially pushing the price toward $2.22163 XRP News Today: XRP Traders Face $15.5M Liquidation As Price …^[4]. This prediction aligned with Coinglass data showing a 4,335% surge in XRP's hourly liquidation imbalance, with long positions suffering $7.96 million in losses within a single hour XRP Faces Technical Breakdown Pressure As Liquidation Surges^[1]. Over 24 hours, XRP's liquidations totaled $25.95 million, with longs accounting for $23.62 million of the damage XRP Faces Technical Breakdown Pressure As Liquidation Surges^[1].

The macroeconomic catalyst for the crash stemmed from Trump's escalation of U.S.-China trade tensions, which he framed as a response to Beijing's export restrictions on rare earth minerals. The announcement caused immediate market panic, with XRP plunging 22.85% to $2.33 and losing 16.31% of its market capitalization to $140.19 billion XRP Open Interest Drops By $2.4B After Recent Selloff^[7]. Analysts attributed the sell-off to a combination of risk-averse sentiment and leveraged position unwinding, as institutional and retail traders scrambled to hedge or close bets.

Despite the sharp drop, on-chain data suggested limited spot selling. Exchange balances for XRP remained stable, indicating that the decline originated primarily in derivatives markets . Whale activity, however, showed a contrasting trend: wallets holding over 1 billion XRP increased their holdings by 1.04 billion tokens ($2.54 billion at current prices), suggesting strategic accumulation during the dip .

The token's technical outlook remains bearish in the short term. XRP's 200-day exponential moving average (EMA) now sits at $2.25, a critical support level that, if breached, could target $1.90 . Open interest in XRP futures has also declined to $3.02 billion, a 64% drop from its January 2025 peak, signaling reduced speculative activity . Funding rates for perpetual contracts have remained near zero since December 2024, reflecting balanced bullish and bearish leverage demand .

Market analysts caution that XRP's recovery depends on external catalysts, such as the approval of spot ETFs or renewed institutional adoption of Ripple's blockchain technology. However, the ongoing legal battle between Ripple and the SEC, along with the administration's diminished focus on crypto policy, may limit near-term upside potential .