ExtraVod, a market commentator, not too long ago prompt that an XRP flash crash could also be imminent, however tasks a doable restoration from the lows.
Notably, XRP has continued to face downward strain since hitting a peak of $2.21 on Dec. 4 after its 8% rebound push. XRP has dropped 7.37% since then, barely holding on at $2.03, however ExtraVod believes the market has not but seen the worst of the downtrend.
Market Liquidations
“XRP flash crash imminent,” ExtraVod stated in a latest X publish amid the continuing value struggles. Whereas he did not expose additional data on X, the market pundit took to YouTube to clarify why he believes this crash might materialize, warning of a doable “XRP emergency.”
In his video commentary, ExtraVod first referred to as consideration to latest liquidation figures. Particularly, a report from The Kobeissi Letter revealed that the crypto market had recorded $200 million value of liquidations over the 4 hours resulting in 4:13 PM UTC on Dec. 5. These liquidations got here as Bitcoin broke beneath $90,000 to commerce at $89,350.
Whereas BTC has since recovered to $89,500 at press time, the newest knowledge from Coinglass confirms that liquidations have surged to $412.6 million over the previous 24 hours, with lengthy positions accounting for $341 million. Amid these developments, ExtraVod says he believes the market is on the verge of witnessing a black swan occasion.
What May Set off the XRP Flash Crash
He then famous that he has noticed “big developments” on the XRP chart that foreshadow the crypto asset’s subsequent transfer. Particularly, the market pundit identified that XRP has been witnessing bottoms at larger lows after a chronic downtrend since April 2025.
For context, after the downtrend that started in March, XRP bottomed at $1.61 on April 7. Additional, within the subsequent downtrend, it bottomed at $1.77 on Oct. 10. In the meantime, XRP noticed subsequent bottoms at $1.81 on Nov. 21, and then at $1.98 on Dec. 1.
ExtraVod famous that these bottoms are literally too shut to one another, and prompt that the explanation XRP could also be experiencing this development could also be as a result of merchants have continued to enter huge positions and place their cease losses below every of those bottoms.
Highlighting this development, the market analyst projected that quickly, market makers might set off a value crash that wipes out these positions, as huge liquidity has fashioned at these lows. That is the reasoning behind his prediction of an “imminent flash crash.”
Nonetheless, he sees this as a good occasion. “The sooner they do it, the higher it’s for us,” ExtraVod stated. In accordance with him, as soon as such a large crash happens and wipes out all this liquidity, XRP might lastly get an opportunity to breathe and push ahead as a substitute of remaining inside the present place, the place it has persistently fluctuated at decrease ranges round $2.
XRP Forming Hidden Bullish Divergence
He then shifted his focus to the XRP RSI, calling consideration to a hidden bullish divergence on the weekly chart. This hidden bullish divergence fashioned because the XRP value recorded the next low whereas the RSI fashioned a decrease low.
For context, XRP’s first backside on the weekly chart was $0.5 in November 2024. In the meantime, the second backside might relaxation across the area of the projected flash crash, forming the next low. Nonetheless, inside this era, the RSI has fashioned an preliminary backside of 44 in November 2024, whereas the subsequent backside could possibly be beneath the 30 mark, marking a decrease low.
Notably, a hidden bullish divergence usually signifies that the continuing uptrend might proceed. Since November 2024, XRP has been on an uptrend, and this development might persist after the ongoing short-term noise. In accordance with ExtraVod, as soon as the flash crash triggers an RSI drop to oversold ranges, XRP might recuperate to larger highs, resulting in an increase within the RSI.
DisClamier: This content material is informational and shouldn’t be thought-about monetary recommendation. The views expressed on this article might embody the creator’s private opinions and don’t replicate The Crypto Primary opinion. Readers are inspired to do thorough analysis earlier than making any funding choices. The Crypto Primary is just not accountable for any monetary losses.
