The over-wilting crypto markets have caught many crypto bulls off guard. On Bloody Monday, this has mirrored in the $1.7 billion leveraged position liquidations, of which $1.6 billion accounts for long plays. Naturally, this has unleashed an earthquake amidst the major-cap altcoins, with Ripple (XRP) taking a considerable hit.
Crypto Vampires Paint XRP’s Funding Rate Red
The OG altcoin embarked on a flash crash on the Futures markets, meaning that massive liquidations have erased blocks of piling up long positions, thus the massive difference in long versus short liquidations. Overnight, this has washed away $75 million like a tsunami, leaving XRP bulls questioning if the $2.80 support level is strong enough.
This has majorly reflected on XRP’s funding rates & Open Interest (OI) on Perpetual markets. Normally, the Open Interest tells us how much leveraged plays are currently active in Futures markets, so a bearish flush like this evaporates a heavy chunk of liquidity.
And so, this has pushed the OI-weighted funding rate to an all-red territory for a brief moment. The situation has calmed down on Tuesday, as the Open Interest (OI) weighted funding rate bounced back to significant positive territory. On the other hand, XRP traders are playing it safe amidst the erratic market movements, with Futures volumes dropping 14.66% from yesterday.
XRP Price Sees Obstacles Getting To This Target
Does this imply further downward acceleration for Ripple’s native crypto? With whales now showcasing nearly neutral behavior, $3 remains a turning point for XRP’s price. With the CMF pointing to -0.03, it looks like large crypto players, otherwise known as whales, are nearly done taking profits for now. On the other hand, the buying power is nowhere near exciting levels.
At the current $2.86 price, the OG altcoin’s rebound race has claimed the lowest-tier Bollinger Band (BOLL), depicted with the green line. However, the $3.16 red-label Bollinger envelope remains the next key target. This could pave the way for an ultimate $3.65 all-time high retest in case XRP restores the $3 psychological threshold.
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Institutional profit-taking hit hard after the first U.S. XRP ETF launch on September 21, 2025, which pulled in $37.7M but triggered sell-offs. Thus, overnight whale activity flipped ETF inflows to outflows.
XRP’s price plunged about 6% to $2.80, then stabilized at $2.86. Consequently, the 24-hour loss hit 3.46%, erasing gains amid broader crypto market volatility.
Volume exploded to over $261 million—four times the daily average—fueled by the midnight futures rout. Meanwhile, it confirmed a wave of institutional selling.
The REX-Osprey ETF debuted with record volume, boosting hype. However, it backfired as sellers dominated near $3.00 resistance, sparking the further market dip.
Support holds at $2.80–$3; a break could test $2.57 or lower. Therefore, watch Fed rate cut signals and whale moves for a potential rebound in this bull market flush.