XRP Price Surges Over $2.50 and Recovers 40% After Flash Crash, Eyes $3 Target
XRP has made a remarkable recovery, bouncing back from a significant flash crash and reclaiming the $2.50 level, instilling renewed confidence among both traders and institutional investors. This resurgence follows a panic-induced sell-off last week, where the price plummeted from $2.77 to $1.64 within a day, resulting in extreme intraday volatility of 41%. This sell-off was triggered by the announcement of a 100% tariff by former President Trump, which had a domino effect on global risk assets, leading to over $150 million in XRP futures liquidation.
Despite the abrupt decline, institutional buyers quickly stepped in, accumulating XRP between $2.34 and $2.45. Trading volumes surged to 817 million, nearly three times the 30-day average, indicating robust market participation during the recovery. Analysts now identify $2.47 as a critical short-term support level, while the key resistance lies near $3.05.
The rebound marked a shift from capitulation to reaccumulation, with the recovery candle symbolizing the absorption of panic flows. Derivatives data revealed a 6.3% drop in open interest, suggesting that leveraged positions were cleared out, setting the stage for a healthier uptrend.
In addition to the technical recovery, the introduction of the RLUSD stablecoin in Ripple’s ecosystem is generating optimism for XRP’s future price performance in 2025. RLUSD allows institutions to purchase large quantities of XRP without direct fiat exposure, minimizing slippage and enhancing liquidity on exchanges. Many believe that this stablecoin mechanism could significantly boost XRP’s price by clearing thin sell orders and accelerating upward moves, potentially facilitating institutional accumulation and propelling the price towards the $3.05–$3.65 resistance range.
Market observers have drawn parallels between the current price structure of XRP and historical cycles, particularly the aftermath of the 2017 rally. After encountering resistance at its 2013 all-time high post-2017, XRP retraced to retest the 2014 resistance levels before initiating a parabolic uptrend. A similar pattern seems to be unfolding in 2025, with XRP undergoing accumulation following a retest of the 2021 resistance zone. Technical analysts suggest that a breakout above a key descending resistance line would confirm a bullish structure, with potential for significant upside momentum.
From a technical perspective, XRP is exhibiting positive indicators, with the crypto price consolidating above $2.47 within a bullish recovery channel. The RSI has rebounded from oversold levels, while the MACD histogram approaches zero, signaling a nascent shift in momentum. Analysts anticipate further upside potential upon a decisive close above $3.05, projecting targets between $3.65 and $4.00 if momentum remains strong. Support levels are solidified between $2.40 and $2.45, with $1.64 marking the capitulation low. Analysts suggest that a breakout could be imminent, paving the way for continued upward movement.
