XRP Drops 42% Amid Whale Liquidation, Recovers Partially to $2.36

XRP Price Collapse Highlights

XRP experienced a 42% drop, marking the sharpest decline in recent years due to whale liquidations and a $150 million decrease in futures open interest.
The price fell to $1.64 before partially recovering to $2.36, with trading volumes surging 164% above the 30-day average, indicating forced deleveraging.
Between October 10 and 11, XRP dropped from $2.82 to $2.36, a 16% daily loss, with intraday volatility reaching 43%.
Institutional futures open interest decreased by $150 million, primarily driven by long liquidations of $21 million against $2 million shorts.
A transfer of 320 million XRP to exchange wallets suggested whale distribution pressure, while late-session buying stabilized prices between $2.35 and $2.40.

Market Context

Ripple's ecosystem is under pressure from global trade tensions, differing central-bank policies, and uncertainties about U.S. digital banking licenses.
The passing of Ripple’s National Trust charter deadline on October 7 increased regulatory risk premiums for XRP-linked institutional products.
Despite the downturn, on-chain data indicates that long-term holders are accumulating XRP below $2.40.

Technical Overview

Support is established around $2.30–$2.35, with potential downside risk to $2.22 if volume decreases.
Resistance is layered at $2.84–$2.90, with a breakout trigger at $3.05.
Volume surged 164% compared to the 30-day average, indicating capitulation-grade turnover.
The 75-day symmetrical triangle pattern broke downward; a close above $2.90 is needed to regain structure.
RSI levels are near multi-month lows, with expanding volatility bands suggesting a potential base formation.

Investor Considerations

Observation of whether the $2.30 support zone will see continued whale accumulation.
Monitoring the rebuild of open interest after a $150 million contraction in derivatives markets.
Awaiting regulatory clarity following the Ripple charter review and its effects on corporate adoption.
Watching for cross-asset effects from Bitcoin's [BTC](https://holder.io/coins/btc/) rally and potential relief rotation into XRP.
Technical confirmation above $2.90 could invalidate the short-term bearish outlook.