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Heavy institutional selling wipes out $10B in market value as leverage unwinds across derivatives markets.
News Background
- XRP endured one of its sharpest single-day declines this month, plunging 6% from $2.49 to $2.41 between October 14 and 15. The drop followed sustained whale distribution, with 2.23B tokens — worth roughly $5.5B — moving to exchanges since October 10.
- Futures open interest collapsed 50% to $4.22B, signaling forced deleveraging as market makers cut risk exposure amid ongoing macro and regulatory uncertainty.
Price Action Summary
- XRP collapsed from $2.56 to $2.41 during the 24-hour window ending Oct. 15 20:00, marking 6% downside and a $0.15 trading range (6.3% intraday volatility).
- Intense sell pressure hit from 13:00–15:00 as volumes spiked from 119M to 154M.
- Support failed at $2.48–$2.50, triggering cascade liquidations that drove price to $2.40.
- A brief recovery attempt to $2.44 around 19:27 was rejected; price closed near lows at $2.41.
- Final hour volumes peaked near 4.5M, confirming capitulation before activity faded.
Technical Analysis
- The breakdown below $2.48 confirms short-term trend reversal. Support now rests at $2.40–$2.42, with interim resistance at $2.55–$2.56 and broader overhead supply at $2.65.
- Volume-weighted metrics point to institutional exodus rather than retail panic. If $2.40 holds, expect range-bound chop until leverage normalizes; a clean reclaim above $2.55 would hint at re-accumulation.
- Momentum oscillators remain oversold, but buyers have yet to step up in size. Funding rates across major derivatives platforms turned negative, reinforcing bearish bias through midweek.
What Traders Are Watching
- Can $2.40 support withstand further selling from whales or funds?
- Whether open interest rebuilds after a 50% drop — signal of stabilization or fresh shorts.
- Spot inflows vs. exchange outflows to gauge if accumulation resumes.
- Reaction near $2.65 resistance for any credible bounce confirmation.
