The XRP price experienced a sharp flash crash, erasing much of the gains from earlier this month and prompting significant liquidations across the market.
Key Takeaways:
- XRP price plunged, triggering $75 million in liquidations.
- Newly launched XRP ETFs may support near-term bullish momentum.
- SEC approval for additional XRP funds is expected in October.
Liquidations Surge Amid Market Volatility
Ripple fell to a low of $2.7082, marking its lowest level since September 1. This represents a 26% drop from the year-to-date high of $3.6600. The decline coincided with intensified crypto market volatility and profit-taking, while total liquidations in the last 24 hours surged 842% to $1.7 billion.
XRP’s leveraged liquidations reached $75 million, the highest since July 23, when they hit $82 million. These liquidations occur when exchanges close leveraged positions due to insufficient collateral to cover potential losses.
Potential Bullish Drivers
Despite the drop, several factors may support a near-term rebound for XRP. The newly launched REX-Osprey XRPR ETF has already gathered over $10 million in assets, signaling strong demand from U.S. investors. Performance from leveraged ETFs like Teucrium’s XXRP and ProShares’ UXRP suggests that future Act 33 funds could also gain strong traction.
Crypto.com’s CEO projected that spot XRP ETFs could see inflows surpassing $8 billion in their first year, echoing previous forecasts by JPMorgan. Polymarket odds for XRP ETF approval have risen above 96%, with approvals expected by October as proposal deadlines approach.
XRP Price Technical Outlook
The daily chart shows the XRP price falling from a year-to-date high of $3.6600 to $2.7082. On a positive note, a hammer candlestick pattern has appeared, often indicating a potential bullish reversal. XRP also remains within a descending channel formed since July, part of a bullish flag pattern that could lead to a breakout.
If a breakout occurs, the first target would be the previous all-time high of $3.6598, roughly 27% above current levels. However, the bullish scenario would be invalidated if XRP drops below the lower boundary of the channel.
