XRP faced renewed pressure this week after the October 10 crash that caused record liquidations in the cryptocurrency market. The token dropped almost 40% during the day before recovering and now hovering between $2.20 and $2.60 as investors assess what’s next.
Despite ponderous whale selling and continued volatility, market analysts say “this week could change everything” for XRP, with key ETF decisions and key regulatory milestones approaching that could redefine its long-term prospects.
XRP's price trends to the downside on the daily chart. Source: XRPUSD on Tradingview
Flash-Crash Fallout: Eliminations, Whale Flows and Key Support
XRP surged in the wake of the October 10 cryptocurrency “flash crash,” dropping 40% on the day before rebounding to a monthly loss near 20%. The cause was not a loophole in the protocol but a leverage collapse linked to tariff headlines that rocked risky assets.
Powerful, forced deleveraging hit both markets CEX and DEX liquiditywithin minutes, sharply lowering the prices of most major companies. Since then, the XRP price has stabilized in the $2.20-$2.60 range, and the 200-day EMA near $2.62 is currently a key turning point.
On-chain flows are showing mixed positioning as gigantic share holders sent gigantic tranches to exchanges during the decline (classic profit taking/hedge confirmation), but after October 11 the flow declined, helping to stabilize the price.
Technically, bulls need a daily close above $2.80-$3.00 to neutralize the short-term downtrend; you will lose $2.20 and the next magnet will be near $1.80. Notably, Ripple’s RLUSD stablecoin held steady despite the chaos, an institution-friendly data point that highlights XRPL’s operational resilience under stress.
Derivatives are heating up as the window for the XRP ETF approaches
Currently, interest in open futures contracts has declined, but options activity is up by triple digits, signaling that investors are preparing for bigger moves. The long-short ratio remains skewed on major exchanges, providing fertile ground for volatility when support breaks.
This backdrop meets a dense ETF decision window (October 18-25) for issuers including Grayscale, 21Shares, Bitwise, Franklin Templeton and CoinShares.
Experts point out that the SEC’s shortened 75-day review is a sign of an accelerated process, even as macroeconomic cross-currents (tariffs, growth swings) complicate risk appetite.
Legal clarity also appears to be high, as courts have confirmed that XRP is not a security on secondary markets, removing a structural overhang that sidelined many institutions last cycle.
Which will reverse the trend
WITH XRP price below the 20/50/100 day EMAs and the Supertrend remains bearish, momentum remains feeble. Bulls need:
- Price Confirmation: Recover $2.80-$3.00 with increasing spot volume to target $3.50-$3.80.
- Confirming Flows: Net inflows in ETFs and options are leaning towards confirming dip purchases.
- Macro composed: Softer tariff rhetoric and bland data allowing risk windows to reopen.
If they are missing, a break below $2.20 risks a deeper correction towards $1.80, with tail-risk bears eyeing $0.75 in the face of a major macro shock.
Nevertheless, the institutional narrative remains intact as RLUSD stability, XRPL-linked CBDC/RWA calls, and a maturing set of regulatory compliance tools support long-term adoption. That’s why some analysts insist that “this week will change everything”, if regulatory catalysts are in line, another XRP rally could begin.
Cover photo from ChatGPT, XRPUSD on Tradingview
