XRP Recovers After $610M Liquidation Shock as Traders Rebuild Confidence

Andrew Chen
Ripple XRP

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  • XRP saw a record $610M in long positions liquidated on October 11.
  • Open Interest and funding rates show early signs of market recovery.
  • Traders are cautiously rebuilding positions amid lingering volatility.

Ripple’s XRP is slowly stabilizing after a record-breaking market wipeout that left traders reeling. On October 11, more than $610 million in long positions were liquidated across major exchanges — the largest single-day loss in XRP’s history.

Record Liquidation Sends Shockwaves

The sudden crash caught leverage-heavy traders off guard. As XRP’s price tumbled, margin calls and stop-loss orders cascaded across Binance, OKX, and Bybit, triggering what some described as a “Black Swan” event for the altcoin.

Yet despite the turmoil, optimism has quietly re-emerged. Platforms like Hyperliquid and Bybit have already seen renewed interest in long positions, suggesting some traders view this correction as an opportunity rather than a capitulation.

Futures Market Finds Its Footing

In the immediate aftermath, Open Interest (OI) on XRP futures plunged from $2.8 billion to $1.4 billion as leveraged traders rushed for the exits. That sharp drop erased weeks of speculative build-up.

XRP
Source: Coinalyze

Now, signs of balance are returning. OI has stabilized, and funding rates, which briefly sank deep into negative territory during the crash, are moving back toward neutral levels. These shifts point to improving sentiment and reduced panic among traders.

XRP Trades in Cautious Consolidation

As of writing, XRP trades at $2.44, down roughly 6% in 24 hours. Technical indicators show a market cooling off after intense volatility — the RSI is oversold, and trading volume has tapered, hinting at exhaustion among sellers.

Also Read: Breaking: XRP and ONDO Just Got the Wall Street Spotlight — Here’s Why It Matters Now

However, analysts warn that a clear rebound will depend on renewed momentum and broader crypto market stability. For now, XRP appears to be in a phase of cautious consolidation, not a confirmed recovery.

While last week’s liquidation exposed the fragility of overleveraged markets, it also flushed out excessive risk. XRP’s path forward hinges on whether buyers can rebuild confidence — and sustain it — in a market still scarred by sudden volatility.

Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.

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