The crypto market has just gone through its biggest crashes ever. Prices across the board fell sharply, wiping out both long and short positions within hours. Many leveraged traders lost their entire balances, with more than $19 million in positions liquidated, even among those using 2x leverage believing it was a safe bet.
For XRP, the decline was just as brutal. XRP price dropped from around $2.8 to $1.26 in a flash before rebounding quickly to the $2.3 area. That fast recovery might look promising on the surface, yet it also raises an important question, where does the XRP price go from here?
XRP Price Recovery After Major Market Crashes
This is not the first time a sudden crash has shaken crypto investors. Historically, deep market corrections often trigger new phases of recovery and accumulation.
Take the market drop during the COVID-19 outbreak as an example, prices fell sharply but later rebounded to start a major bull run. Another case was during the FTX collapse, when fear gripped the market and many assets plunged. Not long after, the entire market began to recover and climb again.
The current XRP movement seems to fit this familiar pattern. After a steep fall, the token has managed to bounce from extreme lows. The sharp wick down to around $1.26 looks more like a liquidity sweep than a sustained breakdown. Based on past market behavior, the probability of XRP revisiting that exact low in the near term is small unless another major event hits the market.
XRP Price Technical Outlook Points to Crucial Levels
Looking at the chart structure, XRP price has been moving within a descending trendline since mid-July. Each attempt to push higher has been met with resistance, forming lower highs and lower lows over the past few months.
The key level to watch remains $2.7. This area acted as a strong support for weeks before finally breaking during the crash. If XRP manages to reclaim and close above this zone, the path toward recovery becomes much clearer. That level could flip into a key pivot for a sustained rally if momentum strengthens.
For now, XRP is trading near $2.3, which is an important short-term support. A daily close below this zone could expose the price to further downside toward the $2.0 to $2.1 range. On the other hand, if XRP holds above $2.3 and gains steady volume, it might signal that buyers are beginning to step back in.
The descending trendline overhead also marks a major resistance area. If XRP price breaks through that trendline, it could confirm a shift in structure that typically precedes mid-term reversals.
What CoinAnk Indicators Suggest About XRP Momentum
On-chain and derivatives data provide extra clues about where momentum might be heading next. The Open Interest to Market Cap Ratio, as shown on CoinAnk, dropped slightly after the crash, suggesting that speculative positions have been flushed out. That kind of reset often clears the path for healthier market moves since leverage‑driven volatility tends to decline after mass liquidations.
The Net Long and Net Short indicators show that long positions decreased while short exposure rose slightly before stabilizing. This implies that traders are still cautious, waiting for a clear breakout before taking new positions. Such a stance often appears at market bottoms, when confidence is low but risk‑reward ratios begin to favor accumulation.
The decline in Open Interest and balanced long‑short data align with a cooling phase, one that usually precedes consolidation before the next directional push. If XRP holds above $2.3 during this period, it could lay the groundwork for a gradual recovery.
Ripple Price Outlook in the Coming Weeks
From a broader perspective, XRP appears to be entering a reset phase similar to previous recovery setups after major downturns. The sharp liquidation candle, the retest of local support, and the gradual recovery signs all suggest that the worst part of the selloff may be over.
Ripple price could stabilize between $2.0 and $2.7 over the next few weeks as volatility cools down. A clean breakout above $2.7 would be the first technical confirmation that momentum is shifting. Until that happens, traders will likely remain cautious and observe whether the support structure holds.
The crypto market’s history shows that every major crash often paves the way for the next rally, it simply takes patience and strong conviction. XRP may now be in that accumulation stage where the market slowly rebuilds its footing before another upward leg begins.