- XRP crash mirrors past declines, sparking hopes of strong recovery.
- Analyst EGRAG highlights repeating XRP patterns after massive market liquidation.
- Investors weigh patience and fear as XRP faces historic downturn.
The XRP market has once again faced a severe downturn, triggering widespread discussions among investors and analysts. This latest crash has drawn attention not only for its depth but also for its striking similarity to previous declines that preceded major recoveries.
According to EGRAG CRYPTO, the recent XRP plunge mirrors historical patterns seen in earlier market collapses. His analysis, shared on X, highlights how each major drop in XRP’s price has been followed by a period of strong recovery, sparking cautious optimism within the community.
Besides the current drop, EGRAG pointed to three significant downturns in XRP’s history. In 2017, the asset collapsed by nearly 99% after a major rally. The SEC lawsuit in 2021 brought another 77% fall, shaking investor confidence. Most recently, XRP recorded a 78% decline, marking one of its steepest drops since the token’s inception.
Moreover, EGRAG compared liquidation figures from major market-wide sell-offs. During the COVID crash, around $1.2 billion in positions were liquidated. The FTX collapse saw roughly $1.6 billion wiped out, while the latest crash reached an astonishing $19.6 billion, underscoring the scale of recent volatility across the crypto sector.
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Historical Patterns May Hold Key Insights
EGRAG’s technical chart, based on Binance’s weekly XRP data, suggests that the token might be entering another long-term accumulation phase. The chart highlights a gradual curve that could set the stage for a recovery if historical behavior repeats.
He explained that each significant XRP decline in the past has eventually paved the way for renewed upward momentum. The analysis also indicated potential resistance zones near $2, $3, and $13, which could act as long-term price targets if a rebound unfolds.
Furthermore, the analyst urged investors to focus on long-term trends rather than short-term volatility. He noted that emotional reactions during major drops often lead to missed opportunities once the market stabilizes.
Investor Sentiment Remains Divided
According to EGRAG, traders now face a familiar choice, sell in fear or stay patient and await possible recovery. His message encouraged the XRP community to remain steady, emphasizing that previous crashes often signaled the start of new market cycles.
Consequently, the ongoing discussions across the XRP community reflect both anxiety and hope. Many investors believe that the extreme liquidations could mark a turning point, much like earlier phases that led to strong rallies.
As the dust settles, the crypto market is watching closely to see whether XRP’s price movement will once again follow its historical recovery path. The coming weeks may reveal if this pattern holds true or if the market is heading into a new chapter entirely.
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