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XRP is under renewed pressure this week following the Oct. 10 crypto flash crash, which triggered record liquidations across major markets. The token briefly plunged nearly 40% intraday before rebounding, now trading between $2.20 and $2.60 as market participants gauge the next move.
Despite heavy selling from whales and ongoing volatility, analysts remain cautiously optimistic. Some insist that “this week could change everything” for XRP, with important ETF decisions and regulatory updates on the horizon potentially reshaping its long-term outlook.
Flash-Crash Fallout: Liquidations and Whale Activity
The flash crash was primarily driven by leveraged positions and macro headlines, rather than any protocol flaw. XRP, like other major cryptocurrencies, was caught in a swift deleveraging event that drained liquidity across both centralized (CEX) and decentralized exchanges (DEX).
Following the drop, XRP has stabilized in the $2.20–$2.60 range, with the 200-day EMA near $2.62 acting as a pivotal technical pivot. On-chain analysis shows mixed flows: large holders moved significant amounts to exchanges during the crash—a classic profit-taking signal—but activity slowed after Oct. 11, helping the price regain composure.
From a technical perspective, bulls need a daily close above $2.80–$3.00 to counter the short-term downtrend. Failure to hold $2.20 could open the door for a deeper retracement toward $1.80, while a severe macro shock could even target $0.75.
Ripple’s RLUSD stablecoin maintained its peg throughout the turbulence, highlighting XRPL’s operational resilience and institutional-ready infrastructure.
Derivatives Heat Up Ahead of ETF Window
While futures open interest eased slightly, options activity surged triple-digits, signaling that traders are preparing for larger price swings. Long/short ratios on major venues remain skewed toward long positions, creating fertile ground for volatility if support levels fail.
The backdrop is further intensified by a dense ETF decision window from Oct. 18–25, with issuers such as Grayscale, 21Shares, Bitwise, Franklin Templeton, and CoinShares awaiting regulatory approvals. The SEC’s shortened 75-day review period hints at an accelerated approval process, although macro uncertainties such as tariffs and growth concerns continue to weigh on risk appetite.
Additionally, court rulings affirming that XRP is not a security on secondary markets have removed a structural overhang, potentially unlocking institutional participation that was previously sidelined.
What Could Flip the Trend
With XRP trading below the 20/50/100-day EMAs and the Supertrend still bearish, short-term momentum remains fragile. Analysts highlight three main factors that could shift the outlook:
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Price Confirmation: Reclaim $2.80–$3.00 with rising spot volume to target $3.50–$3.80.
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Flows Confirmation: Positive ETF inflows and normalization of options skew to support dip-buying.
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Macro Calm: Reduced tariff tensions and benign economic data to restore risk appetite.
Absent these factors, XRP risks a further correction below $2.20, with bearish traders eyeing deeper levels.
Institutional Narrative Remains Intact
Despite short-term weakness, the long-term institutional narrative for XRP remains strong. The stability of RLUSD, growing discussions around CBDCs and tokenized real-world assets (RWA) on XRPL, and a maturing compliance ecosystem support broader adoption.
Market commentators emphasize that if regulatory catalysts align this week, XRP could set the stage for its next leg higher, making this a critical period for both short-term traders and long-term investors.
