How XRP Rode Leverage to $1.60 and Then Lost $610 Million in a Single Session
XRP's price fell to $1 in mid-August with open interest dropping to $360M, indicating reduced leverage. It recovered to $1.60 by early October, with open interest rising to $620M, but $610M in long positions were liquidated on October 11. Currently, XRP trades around $1.37, with open interest at $467M and positive funding rates, but spot market demand shows inflows of $11.31M.
How this was made
The 30-second read
Why it matters
The liquidation event may trigger further margin calls and suppress XRP’s recovery, but fresh inflows into XRP ETFs suggest some buying interest remains.
Market read
The record liquidation underscores heightened volatility in XRP’s leveraged market, offering short‑term trading opportunities.
What to watch
Potential inflows into XRP ETFs and broader market risk appetite could cushion price declines.
Background
XRP’s price rose to $1.55‑$1.60 in September on leveraged futures buying, then fell sharply after a massive liquidation event.
Ticker impact
The article reports a record $610 million liquidation of XRP long positions on Oct 11, the largest single‑day event for the crypto.
likely downward pressure as the market prices in liquidation risk
The $610 M liquidation indicates a sharp reversal from a leveraged rally, suggesting further selling pressure.
Market effects
Highlights heightened risk in crypto derivatives markets, especially for leveraged tokens.
Primarily affects global crypto traders; no direct regional equity impact.
Significant for crypto‑focused funds and traders worldwide.
Counterpoint
If new long positions accumulate quickly, a short squeeze could reverse the downtrend.
Key entities
- ExchangeBinance
One of the platforms where the $610 M liquidation occurred.
- ExchangeOKX
Another exchange reporting the liquidation.
- ExchangeBybit
Third exchange involved in the liquidation event.
