XRP attracted approximately $30 billion in new capital following a severe market correction that erased more than $400 billion from the cryptocurrency sector on Thursday, marking one of the largest liquidation events recorded in 2025. The digital asset has emerged as one of the first major cryptocurrencies to demonstrate renewed strength after the sell-off, which analysts attribute to investor sentiment shifting from caution to active buying.
What to Know:
- XRP received roughly $30 billion in inflows after investors purchased the asset during its price decline, reversing weeks of sideways trading and market uncertainty.
- The Thursday market crash eliminated over $400 billion in total cryptocurrency market capitalization, triggered by geopolitical tensions stemming from statements made by President Donald Trump.
- Technical analysts report XRP has completed a specific chart pattern on the 12-hour timeframe, with leverage-driven positions cleared from the market and a target price of $4.00 identified for the next potential move.
Capital Returns Following Market Correction
The cryptocurrency market saw significant capital rotation back into XRP after the sharp downturn, according to analysis from CryptosRus, a cryptocurrency commentary platform. The inflows directly counteracted losses sustained during Thursday's volatility.
XRP demonstrated relative resilience compared to other digital assets during the recovery phase. Market participants appear to view the recent decline as a temporary disruption rather than a fundamental breakdown in the asset's value proposition.
The buying activity coincides with ongoing speculation regarding potential approval of a spot XRP exchange-traded fund, which would provide institutional investors with regulated exposure to the cryptocurrency. The timing of the capital inflows suggests investors used the price decline as an entry opportunity. Trading volumes increased substantially as buyers stepped in at lower price levels.
Technical Structure Resets After Liquidation Wave
DustyBC Crypto, a market commentator specializing in technical analysis, noted that XRP completed what traders identify as an Elliott wave E formation on the 12-hour chart. This pattern emerged following the liquidation event that removed highly leveraged positions from the market.
The sell-off originated from geopolitical developments, specifically rhetoric from President Trump that sent ripples through cryptocurrency markets.
XRP experienced a sharp decline to multi-week lows before recovering.
The rapid price movement forced liquidations of positions using borrowed funds to amplify trading exposure. Traders operating without leverage—using a one-to-one capital ratio—experienced portfolio declines but avoided forced exits from their positions.
The liquidation event effectively removed excess speculation from the market, leaving what analysts describe as a cleaner market structure. This clearing process typically precedes periods of reduced volatility and potentially renewed upward movement.
XRP's price action swept through multiple historical price zones during the decline, areas that markets often take months to revisit under normal conditions. This rapid movement through key levels reset resistance points and eliminated overhead supply.
Understanding Technical Analysis Terms
Elliott Wave theory, developed by Ralph Nelson Elliott in the 1930s, attempts to identify recurring patterns in financial markets based on investor psychology and crowd behavior. The theory suggests markets move in specific wave sequences, with corrective waves labeled A through E. Wave E typically represents the final leg of a correction before a trend resumes.
Liquidation events occur when exchanges forcibly close leveraged positions because traders lack sufficient collateral to maintain them. Cryptocurrency exchanges allow users to borrow capital to increase position sizes, but price movements against these positions trigger automatic selling. When multiple leveraged positions close simultaneously, the resulting selling pressure amplifies price declines.
Market capitalization represents the total value of a cryptocurrency, calculated by multiplying the current price by the circulating supply of tokens. The $400 billion decline in total cryptocurrency market value indicates the scale of Thursday's sell-off across all digital assets.
Closing Thoughts
Analysts monitoring XRP suggest the asset has established a foundation for potential further gains following the liquidation event. The technical target of $4.00 represents approximately a 60% increase from current price levels, though commentators emphasize that patience remains necessary as markets digest recent volatility. The completion of the Elliott wave pattern and removal of leveraged positions has created what traders view as improved conditions for upward movement, though cryptocurrency markets remain subject to rapid shifts in sentiment and external factors.