XRP surged over 46% this week to a seven-month high of $1.70, marking the most bullish period since the Q3 2025 cycle began. However, a sharp 14% pullback to $1.46 triggered over $250 million in long liquidations, the most among large-cap assets. Analysts warn the extreme optimism, reflected in rising funding rates and aggressive long positions, could lead to a bull trap before any move toward $2. The flash crash may serve as a reality check for an overheating market.
XRP recorded the strongest weekly performance among large-cap cryptocurrencies, rising more than 46% and reaching $1.70, its highest level in over seven months. The rally made XRP the best-performing large-cap asset on a weekly basis.
However, the past 24 hours saw a sharp reversal as XRP closed at $1.46, a 14% decline from the local top. The flash crash hit XRP harder than Bitcoin or Ethereum, with over $250 million in long positions liquidated, accounting for more than 72% of all liquidations.
Despite the turmoil, analysts believe the price could head to $2 by the end of the third quarter. Technical factors currently drive the bullishness, with one analyst noting that a similar setup to the 2024 XRP rally, which saw a 650% price spike, is emerging.
Rising on-chain activity also reflects growing optimism. The Binance funding rate for XRP climbed to a two-week high of 0.01%, indicating traders are deploying more aggressive long positions. Rates climbing too quickly can signal market weakness, as too many longs increase the risk of a wave of liquidations if the price moves sharply lower.
This appears to have happened over the last 24 hours, with the 14% drop and $250 million in liquidations serving as a potential reality check after the 45% weekly gain. The growing number of longs may lead to a bull trap before XRP breaks out toward $2.
