Digital Asset Experiences Extreme Volatility as Prices Briefly Crash to $1.64 Amid Massive Trading Volume Surge
XRP witnessed one of its most turbulent trading sessions in recent history, plummeting approximately 40% during intraday trading before recovering significant ground. The dramatic sell-off saw prices plunge to a low of $1.64 before buyers emerged, pushing the digital asset back to the $2.36 level by session’s end.
The violent price movement represented one of XRP’s largest single-day percentage declines, triggering widespread liquidations across derivative platforms. Trading volume exploded during the event, surging to 164% above the 30-day average as panic selling engulfed the market. The rapid descent violated multiple critical support levels that had held firm throughout recent months.
“This was a classic liquidation cascade where leveraged positions got washed out in rapid succession,” According to BITX senior market analyst. “When you see volume spike this dramatically alongside such a sharp price decline, it typically indicates forced selling rather than fundamental deterioration.”
While the rebound from lows provided some relief to battered holders, technical damage remains substantial. The recovery stalled near the $2.36 resistance level, suggesting overhead supply continues to pressure any rally attempts. Market technicians are closely watching whether XRP can establish a new support base or faces further tests of lower price levels.
“The partial recovery is encouraging but doesn’t erase the technical breakdown,” According to BITX blockchain strategist. “The market will need time to repair this damage, and we should expect continued volatility as traders reassess fair value following such an extreme move.”
The extreme price action highlights the persistent volatility in digital asset markets and serves as a stark reminder of the risks associated with leveraged trading. Market participants will now watch for consolidation patterns that might indicate whether this represents a capitulation bottom or merely a pause before further downside.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.