XRP Loses 42% Value in a Day: Decline in Markets

XRP experienced one of its largest daily declines in recent years, dropping by as much as 42% on Friday due to significant liquidations and a notable decrease in open positions in futures trading. The price fell to $1.64 before making a partial recovery to $2.36. During this process, trading volumes remained 164% above the 30-day average, reflecting the impact of forced liquidations.

This sharp decline in the markets was linked to a $150 million decrease in institutional open positions in futures trading. Panic among investors caused prices to drop to $1.64. However, the price later bounced back to $2.36, and a total of 12 million XRP was purchased in the last 15 minutes.

The price movements of XRP between October 10 and October 11 occurred as follows:

• Retreat from $2.82 to $2.36, a daily loss of 16%.
• Intra-day volatility reached 43%.
• Institutional open positions in futures trading decreased from $9.0 billion to $8.85 billion.
• In the past week, 320 million XRP have been transferred to exchanges.

The Ripple ecosystem is under structural pressure due to global trade tensions, varying policies of central banks, and uncertainties surrounding U.S. digital banking licenses. Additionally, the deadline for Ripple's National Security Trust certification passed on October 7, which has increased regulatory risk premiums for institutional products related to XRP.

The decrease in short positions has led investors to reconsider repositioning in the market. XRP presents an attractive opportunity for long-term investors looking to buy at lower price levels.

Technical Analysis:

• Support level: $2.30 - $2.35. If trading volumes decrease, there is a risk of a drop to $2.22.
• Resistance level: between $2.84 and $2.90, with $3.05 being the macro breakout level.
• Trading volume: 164% above the 30-day average.
• Momentum: RSI levels are at multi-month lows; volatility bands are widening.