Expert Reveals Hidden Cause of Recent XRP Flash Crash

When liquidity dries up, markets can unravel with remarkable speed. A recent post from Dom (@traderview2) offered a vivid look at this phenomenon through a chart comparing Binance’s and Coinbase’s XRP spot markets. Both charts captured the same event in real time, showing a sharp liquidity disappearance that preceded XRP’s steep fall from above $2.8 to below $1.50. Liquidity Vanishes in Seconds The data in Dom’s post reveal a synchronized withdrawal of orders across major exchanges moments before the price cascade. The visual shows the order book depth within 50% of the quoted price contracting rapidly, leaving a thin market with few bids to absorb selling pressure. In practical terms, this means that as sell orders increased, the absence of nearby buy orders magnified the impact of each trade. Without adequate liquidity to cushion the descent, XRP’s price fell sharply across platforms, hitting a low point it has not reached since June . The TradingLite chart’s Orderbook Suite indicator clearly illustrates this imbalance, with a deep negative swing marking the point of collapse. Look at how quickly liquidity vanished on $XRP spot markets right before the massive part of the cascade Orderbook depth +/-50% of the quote price just gone This is a visualization of how these exact moves can happen… We can only speculate… pic.twitter.com/9icJa0btKf — Dom (@traderview2) October 11, 2025 A Fragile Market Structure Dom’s observation indicates high volatility during liquidity shocks, which is a core feature of modern digital asset markets. In spot markets like XRP’s, where price discovery occurs in real time, even a temporary reduction in resting orders can amplify moves that would otherwise remain contained. The synchronized behavior on Binance and Coinbase suggests that liquidity providers may have stepped back simultaneously, either through algorithmic withdrawal or automated protection triggers. This event also came at a crucial technical juncture for XRP. We are on X, follow us to connect with us :- @TimesTabloid1 — TimesTabloid (@TimesTabloid1) June 15, 2025 After months of trading close to $3, the market had shown signs of fatigue near the $2.8 range, forming resistance as momentum slowed. When liquidity thinned, the sell-off accelerated. That breakdown signals a potential shift in market structure, as buyers who previously defended that threshold were unable to maintain support . What Comes Next for XRP? The recovery since the flash drop has been steady but limited, with prices fluctuating between roughly $2.30 and $2.50 in the following seasons. This consolidation reflects cautious re-entry from traders still assessing market depth after the event. If liquidity continues to rebuild and volume stabilizes, XRP could retest the $2.6 to $2.8 range where the decline began. However, if bid density remains low, volatility could persist, leaving the token vulnerable to renewed downward pressure. Disclaimer : This content is meant to inform and should not be considered financial advice. The views expressed in this article may include the author’s personal opinions and do not represent Times Tabloid’s opinion. Readers are advised to conduct thorough research before making any investment decisions. Any action taken by the reader is strictly at their own risk. Times Tabloid is not responsible for any financial losses. Follow us on X , Facebook , Telegram , and Google News The post Expert Reveals Hidden Cause of Recent XRP Flash Crash appeared first on Times Tabloid .