Key Notes
- XRP trading volumes shot up 354% above the 30-day average, signaling a potential completion of the liquidity flush.
- On-chain data shows wallets holding over 1 billion XRP increased their holdings from 23.98 billion to 25.02 billion.
- XRP is showing its second-longest capitulation wick in history, similar to 2017 before a major rally.
Amid the broader crypto market crash, Ripple’s native crypto XRP has corrected 13% and is currently trading at $2.44. However, the intraday chart shows that XRP took a dive to the lows of $1.5, before recovering again. The trading volume has surged 357% to more than $21.5 billion while interest has spiked again.
XRP Price Stages Sharp Rebound From Bottom
XRP suffered one of its steepest single-day declines in recent years on Friday, October 10, amid the broader crypto market crash. The Ripple crypto plummeted as much as 42% amid heavy whale liquidations and a sharp drop in futures open interest by $150 million.
The sell-off dragged XRP to an intraday low of $1.54 before rebounding to $2.46, while trading volumes spiked 357% above the 30-day average. XRP has swept all major downside liquidity levels on the daily chart, according to market data. Analysts note that this move could indicate the completion of a liquidity flush, potentially setting the stage for a price rebound if buying pressure resumes.
Furthermore, with several spot Crypto ETFs waiting for approval in the October 18-21 timeline, it could serve as a potential catalyst moving ahead. The ongoing US government shutdown could play a spoilsport in this regard.
XRP price is witnessing its second-longest capitulation wick in history. The last comparable event occurred in 2017, which preceded one of XRP’s most significant historical rallies, fueling speculation of a potential major reversal ahead.
On-chain data from Santiment indicates that XRP’s recent decline was not driven by investors dumping tokens. Exchange balances have remained largely unchanged over the past month, even amid the sharp price drop, suggesting minimal spot selling activity.
XRP Exchange Supply | Source: Santiment
Instead, the correction appears to have originated in the derivatives market, where over-leveraged long positions were liquidated as the XRP price breached key support levels.
XRP Whales Buy the Dips
While smaller traders were being liquidated, whales quietly accumulated XRP. Santiment data shows that wallets holding over 1 billion XRP increased their holdings from 23.98 billion to 25.02 billion following the crash, adding approximately 1.04 billion XRP, valued at around $2.54 billion at current prices.
XRP whale purchases | Source: Santiment
This activity aligns with on-chain data with stable exchange balances alongside rising whale holdings, indicating the decline was not driven by spot selling.
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Bhushan is a FinTech enthusiast and holds a good flair in understanding financial markets. His interest in economics and finance draw his attention towards the new emerging Blockchain Technology and Cryptocurrency markets. He is continuously in a learning process and keeps himself motivated by sharing his acquired knowledge. In free time he reads thriller fictions novels and sometimes explore his culinary skills.
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Source: https://www.coinspeaker.com/xrp-price-recovers-from-the-bottom-as-whales-buy-the-dips/
