The cryptocurrency market witnessed an intense battle between bulls and bears as XRP experienced a sharp decline followed by a remarkable resurgence. On February 3, the digital asset plunged to a nine-week low of $1.771 on Binance, marking a moment of panic for traders. However, in a dramatic turn of events, XRP staged a swift recovery, surging 57% to reclaim the $2.78 mark within hours.
Mass Liquidations in the XRP Market
XRP's price turbulence affected the derivatives market, triggering widespread liquidations. According to Coinglass data, February 3 saw the largest one-day liquidation event in XRP’s history. Long-position holders suffered the heaviest losses, with approximately $74.67 million wiped out, while short sellers lost around $28.28 million. The total market-wide liquidations for XRP reached a staggering $103 million, underscoring the intense volatility.
XRP's Remarkable Recovery
Following the steep decline, XRP staged an impressive rebound, rallying from $1.771 to $2.781 by the evening of February 3. This 57% surge within a single day caught the attention of market commentators, many of whom noted XRP’s extraordinary resilience despite the heavy sell-off. Market analyst Dom pointed out the significance of this movement, drawing comparisons to XRP’s historical price behavior. He noted that the asset had remained relatively stagnant for years, hovering around $0.40, yet it recently gained $1.30 in just two days.
Is XRP Poised for a $5 Surge?
Despite retracing slightly to around $2.60, XRP continues to hold onto most of its recent gains. With renewed bullish momentum, analysts are now speculating on what could come next. Steingraber has suggested that XRP might be gearing up for an even larger price movement, potentially targeting a $5 swing. For XRP to achieve this, the asset must rally approximately 192.4% from its current level, reaching around $7.60. If such a move materializes, it will propel XRP’s market capitalization to roughly $433.2 billion—surpassing Ethereum and making XRP the second-largest cryptocurrency behind Bitcoin.
XRP’s latest price action underscores the asset’s unpredictable yet explosive nature. While past performance does not guarantee future results, the recent surge has reignited enthusiasm within the XRP community. If momentum continues building, the possibility of a much larger breakout cannot be ruled out.
