$610M ‘black swan’ crash shakes XRP – Can bulls recover?

Key takeaways

Did XRP suffer a major liquidation event?

Over $610 million in long positions were liquidated on the 11th of October, the largest in XRP’s history.

Is the XRP market recovering after the crash?

Open Interest and Funding Rates are stabilizing, but price action remains cautious and volatile.

Ripple’s XRP is clawing its way back after one of its worst wipeouts in months.

More than $610 million in long positions were liquidated on the 11th of October across major exchanges, a shock some traders dubbed a “Black Swan” event.

However, buyers aren’t ready to give up just yet.

XRP liquidation shakes traders

The XRP market faced a historic flush-out over the weekend, with over $610 million in long positions liquidated across Binance, OKX, and Bybit.

It was the largest single-day liquidation event in XRP’s history.

Source: X

Leverage-heavy traders were blindsided by a sharp price drop, which triggered a wave of margin calls and stop-loss liquidations. 

Despite the turmoil, exchanges like Hyperliquid and Bybit quickly saw renewed long-term interest, with traders now betting on a fast recovery, even as short-term volatility remains high.

Futures market stabilizes post-crashout

Following the record liquidation, XRP’s Open Interest (OI) plunged sharply from above $2.8 billion to around $1.4 billion as traders rushed to unwind leveraged positions.

Source: Coinalyze

However, data now shows OI stabilizing, so new positions are slowly returning to the market.

Meanwhile, the Funding Rates, which briefly dipped deep into negative territory during the crash, are going back toward neutral. This is an early sign that sentiment may be recovering.

Traders are regaining confidence, though volatility remains a lingering risk in the short term.

Caution prevails!

At press time, XRP traded at $2.44, down over 6% in 24 hours, with its recovery momentum stalling after the liquidation crash.

Source: TradingView

The chart showed a brief volume spike during the sharp sell-off, followed by decreased trading activity – a sign of exhausted volatility. The RSI was entering oversold territory, while the DMI indicated weak directional strength.

Despite stabilization, XRP looks to be in cautious consolidation rather than a decisive rebound.