Ripple (XRP) Soars 160% Following $20B Liquidation Incident – What Comes Next?

Ripple (XRP) has made a significant recovery from previous lows below $1, reaching $2.60 following adverse market conditions triggered by a 100% tariff imposed by Trump on China, leading to a staggering $19 billion liquidation in the crypto sector. The recent buying momentum has reinstated investor confidence.

Analysts point to a positive technical outlook for XRP, suggesting that weekly closes above the $2.80 mark could pave the way for further gains.

Technical Resistance Levels

After experiencing a remarkable 160% recovery from a Saturday low of approximately $1, XRP rebounded following the largest recorded liquidations in the crypto market, which saw nearly $20 billion in leveraged positions wiped out. The overall market appears to have stabilized, as indicated by the total market capitalization recovering to over $4 trillion after easing US-China trade tensions.

Institutional confidence in XRP has also begun to return. Analysts from B2BINPAY revealed that exchange-traded crypto products (ETPs) welcomed close to $6 billion in inflows earlier this month, including over $200 million into XRP-linked funds, indicating a renewed interest from professional investors post Ripple’s favorable legal outcomes with the US SEC in August.

From a technical analysis perspective, B2BINPAY identified immediate resistance for XRP near the $2.80 to $3.00 range. A weekly close above this zone may subsequently target a price of $3.40 to $3.70. Conversely, any slowdown might prompt a consolidation phase between $2.50 and $2.70 while leveraged positions recalibrate.

Wider economic factors, such as a weaker dollar and eased trade tensions, could bolster further progress for XRP, though potential new shocks might hinder positive momentum.

“Still, the fact that XRP rebounded so quickly after a systemic flash crash means that its fundamental demand and investor base remain strong.”

Zooming Out

The short-term bullish momentum complements long-term positive trends. According to ChartNerd, XRP seems poised for higher levels after breaking out of a multi-year triangle pattern established in 2018, with a definitive breakout occurring by late 2023. Following this, the crypto asset has been tracking a supportive curve and maintaining critical pricing levels.

Using Fibonacci extensions, projections suggest bold targets of $14 and $28. Additional flag formations anticipated for 2024-2025 may indicate a period of brief consolidation before another upward trend begins. If XRP breaches these flags, it could reach the elevated targets by 2026 to 2028.