XRP Price Faces a Flash Crash as Bulls Get Swatted By Sellers

XRP (XRP-USD) faced a flash crash over the weekend, which sent the price tumbling toward $1.33. The asset remains stuck in a downward-moving channel, and while buyers tried to push the price above $1.60 recently, the attempt was quickly swatted down by sellers. This liquidity sweep proved that there are still too many people looking to sell at higher prices, keeping the pressure firmly on the downside. XRP is now down 30% over the last month, mirroring a broader market rout that has wiped out billions in value.

Panic Selling Hits a Rare 39-Month Peak

The most shocking data from this crash involves the realized losses recorded on the blockchain. According to Santiment, XRP just saw its biggest spike in realized losses in over three years. This means investors are panicking and selling their tokens for much less than they originally paid. The last time we saw a loss spike this big was during the market bottom of 2022. Historically, when realized losses hit these extreme levels, it suggests the selling is almost over, as a similar spike in 2022 was followed by a massive 100% rally.

Technical Indicators Signal an Oversold Market

While the price action looks bearish, several tools suggest the selling has been overdone. The Relative Strength Index (RSI), which measures how fast a price is falling, hit a low near 30. This puts XRP in oversold territory, meaning the rubber band has been stretched so far to the downside that a bounce back up is becoming more likely. However, traders are still waiting for a bullish divergence to appear on the charts to prove that the momentum has truly shifted.

Key Levels to Watch

The market has marked $1.30 as the most important level to watch. During the crash, the price briefly dipped below this point before buyers stepped in to push it back up. If XRP closes a day below this price, the next stops could be $1.20 or even the psychological must-hold level of $1.00. To regain control, bulls need to push the price above the mid-Bollinger Band at $1.42. Reclaiming this level would open a path back toward $1.50 and the previous $1.60 resistance.

At the time of writing, XRP is sitting at $1.4116.

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