XRP Shows 2017 Déjà Vu as New Cycle Builds Strength

In Brief

• XRP dropped over 70% during the crash, marking the largest decline among major cryptocurrencies.
• Over $707M in XRP positions were liquidated, including $615M in longs wiped out in minutes.
• Analysts see current $1.90–$2.00 zone as key demand area, mirroring XRP’s 2017 accumulation phase.

XRP is mirroring past market cycles, but recent volatility disrupted its short-term structure. After peaking near $2.65, it dropped sharply to $0.78 during a broader crypto market crash.

According to The Kobeissi Letter, the total market cap plunged from $4.1 trillion to $3.3 trillion within eight hours. This $800 billion drop wiped out nearly 20% of the entire crypto market in less than a day.

Over $707 million in XRP positions were liquidated, including $615 million in longs, marking one of the sharpest declines. Compared to BTC and ETH, XRP saw the largest percentage drop at over 70%, while BTC and ETH declined 13–15%.

Source: X

EtherNasyonaL stated that XRP’s structure is repeating the 2017 pattern, where it formed a base after rejecting previous highs. Now, the $1.90–$2.00 range, once the 2021 ATH zone, acts as the current accumulation zone.

Despite the crash, analyst Steph_iscrypto noted XRP is extremely oversold and may be primed for a bounce. Other analysts suggest the drop was likely engineered, citing Binance’s low of $0.78 and whale activity before the crash.

Sentiment Mixed as Derivatives Reset

Data from Coinglass shows trading volume for XRP rose 11.51% to $18.37 billion, indicating renewed activity after the selloff. However, open interest dropped 13.77% to $4.16 billion, suggesting many positions were closed.

Options volume surged 416.78%, while options open interest increased 113.44%, showing increased hedging and demand for protection. The long/short ratio on Binance reached 2.3647, indicating a slight bullish bias remains.

Meanwhile, XRP’s price is consolidating above key levels, showing stability as analysts emphasize patience and highlight similarities to past pre-breakout phases.