XRP Surges 22% After Flash Crash Sends Price to $1 Level
XRP staged a sharp rebound after a brutal sell-off that briefly pushed the token down to the $1.14 area, as a broader crypto market crash triggered heavy liquidations and panic-driven trading.
- XRP briefly fell to around $1.14 during a broader market crash before rebounding sharply.
- Liquidations topped $55 million, reflecting extreme two-sided volatility.
- Ripple’s new EMI license in Luxembourg strengthens its ability to serve institutions across the EU.
- Exchange balances are at eight-year lows, raising supply squeeze narratives.
While the recovery lifted XRP back toward $1.50, weekly performance remains deep in the red, underlining how violent the recent move was.
Sharp drop triggers liquidations as volatility spikes
The slide to $1.14 unfolded during a wave of market-wide stress that hit both majors and altcoins. XRP was not spared, with total liquidations reaching around $55 million, split almost evenly between long and short positions. The data shows $28.9 million in long liquidations and roughly $26.4 million in shorts, highlighting how choppy conditions punished traders on both sides.
Despite the rebound, XRP is still down more than 14% on a seven-day basis, even as the last 24 hours show a strong bounce of over 22%. Trading volume surged during the recovery, suggesting aggressive dip-buying rather than a slow, low-liquidity grind higher.
Europe becomes a strategic focus for Ripple
Away from short-term price action, Ripple has quietly strengthened its regulatory footing in Europe. The company recently secured a full Electronic Money Institution license in Luxembourg, granting it passporting rights across all 27 EU member states. This allows Ripple to offer regulated digital payment services throughout the European Economic Area and positions it to deepen relationships with banks, payment providers, and other institutional clients.
This development comes as attention turns to mid-February, when Ripple executives are expected to outline strategic priorities for the year. Markets are watching closely for signals on expansion plans, partnerships, and how regulatory clarity in Europe could translate into real-world XRP usage.
Exchange balances hit multi-year lows
On-chain data adds another layer to the story. The amount of XRP held on exchanges has fallen to its lowest level in roughly eight years, with balances down about 57% compared to a year ago. Some analysts argue this trend reduces immediate sell pressure and could set the stage for a supply squeeze if institutional demand accelerates, particularly in regions where Ripple is gaining regulatory traction.
While this does not eliminate downside risk during macro-driven sell-offs, it does suggest that longer-term holders are increasingly comfortable keeping XRP off exchanges.
Technical analysis: momentum flips bullish, but caution remains
From a technical perspective, momentum indicators are turning constructive after the bounce. On the hourly chart, MACD has made a bullish crossover, with the histogram flipping positive and expanding, signaling strengthening upside momentum following the capitulation move.
RSI rebounded sharply from oversold territory near 20 and is now hovering around the 58–70 zone, indicating recovery strength but also approaching levels where short-term cooling is possible.
Price has reclaimed the $1.45–$1.50 area, which now acts as a key short-term pivot. Holding above this zone could open the door for a push toward the $1.60–$1.65 region. Failure to sustain momentum, however, would put focus back on support around $1.30, with the $1.14 low remaining the critical downside reference from this crash
As XRP stabilizes after one of its most volatile weeks in months, traders and investors are weighing whether this rebound marks the start of a broader recovery or just a pause in a still-fragile market.
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