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 ￰0￱ 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 ￰1￱ visual shows the order book depth within 50% of the quoted price contracting rapidly, leaving a thin market with few bids to absorb selling ￰2￱ practical terms, this means that as sell orders increased, the absence of nearby buy orders magnified the impact of each ￰3￱ adequate liquidity to cushion the descent, XRP’s price fell sharply across platforms, hitting a low point it has not reached since ￰4￱ TradingLite chart’s Orderbook Suite indicator clearly illustrates this imbalance, with a deep negative swing marking the point of ￰5￱ 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… ￰6￱ — 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 ￰7￱ 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 ￰8￱ synchronized behavior on Binance and Coinbase suggests that liquidity providers may have stepped back simultaneously, either through algorithmic withdrawal or automated protection ￰9￱ event also came at a crucial technical juncture for ￰10￱ 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 ￰11￱ liquidity thinned, the sell-off ￰12￱ breakdown signals a potential shift in market structure, as buyers who previously defended that threshold were unable to maintain ￰13￱ 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 ￰14￱ consolidation reflects cautious re-entry from traders still assessing market depth after the ￰15￱ 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 ￰16￱ : This content is meant to inform and should not be considered financial ￰17￱ views expressed in this article may include the author’s personal opinions and do not represent Times Tabloid’s ￰18￱ are advised to conduct thorough research before making any investment ￰19￱ action taken by the reader is strictly at their own ￰20￱ Tabloid is not responsible for any financial ￰21￱ us on X , Facebook , Telegram , and Google News