Key Points
- XRP’s value has dropped 13% amidst a wider crypto market crash, but it has shown signs of recovery.
- Whale investors have been accumulating XRP during the downturn, with their holdings increasing significantly.
XRP, the native cryptocurrency of Ripple, has experienced a 13% correction amidst a larger crypto market crash. It is now trading at $2.44. The intraday chart reveals that XRP dipped to a low of $1.5 before bouncing back. The trading volume has skyrocketed by 357% to over $21.5 billion, indicating renewed interest in the cryptocurrency.
XRP Bounces Back
On Friday, October 10, XRP underwent one of its most significant single-day declines in recent years due to the overall crypto market crash. The value of the Ripple cryptocurrency dropped by as much as 42% due to heavy whale liquidations and a sharp decrease in futures open interest by $150 million.
This sell-off brought XRP to an intraday low of $1.54 before it rebounded to $2.46. Trading volumes surged 357% above the 30-day average. Market data shows that XRP has cleared all major downside liquidity levels on the daily chart. Analysts suggest this could signal the end of a liquidity flush, potentially setting the stage for a price rebound if buying pressure resumes.
Several spot Crypto ETFs are awaiting approval in the October 18-21 timeline, which could serve as a potential catalyst moving forward. However, the ongoing US government shutdown could potentially disrupt this.
Whale Investors Accumulate XRP
While smaller traders were being liquidated, whale investors were quietly accumulating XRP. Data from Santiment shows that wallets holding over 1 billion XRP increased their holdings from 23.98 billion to 25.02 billion following the crash. This equates to an addition of approximately 1.04 billion XRP, valued at around $2.54 billion at current prices.
This activity aligns with on-chain data showing stable exchange balances alongside rising whale holdings. This suggests that the decline was not driven by spot selling.
