The cryptocurrency flash crash on October 10, which wiped out nearly $20 billion in leveraged positions, surprised investors across the cryptocurrency market. XRP (CRYPTO:XRP) was hit hard by a 60% drop, which affected its momentum and disrupted short-term trends.
However, the price of XRP has entered a recovery phase, driven by Ripple’s ongoing institutional expansion. As sentiment slowly recovers, investors are weighing a crucial question: is XRP still worth buying after the drop? Let’s find out.
Before the sudden cryptocurrency crash, the price of XRP had been gaining momentum with ETF spot approval reports potentially attracting between $3 and $8 billion in inflows. Institutional confidence backed this move as Wall Street analysts highlighted the new XRP benchmark price index as a sign that institutional whales are considering XRP as a legitimate investment option. This news sparked optimism across the broader crypto market, with XRP predictions pointing towards a rise to $4.
To add to the momentum, Ripple partnered with Bahrain Fintech Bay with the aim of providing custody of digital assets and expanding the reach of the RLUSD stablecoin in the Middle East. The deal marked a strategic boost as liquidity increased and daily XRP trading volumes averaged $170 million, with the crypto reaching $2.95 in early October.
XRP rally stalled after the crash. As many leveraged positions experienced heavy liquidations, XRP was not left out, experiencing a 60% drop from its local highs to trade at $1.25. This downturn temporarily wiped out all the bullish optimism created by the news of the XRP ETF approvals and tested its long-term support levels. However, despite the recession, it turned out to be a strategic time for some investors, as whales known for buying the dip massively acquired XRP around the $1.30 to $1.50 zone.
After the crash, the price of XRP recovered faster than most cryptocurrencies. The cryptocurrency has recovered to a price of around $2.60 and is trading above the short-term moving averages. XRP’s powerful rally has been attributed to Ripple Network’s strategic corporate moves, such as the recent $1.25 billion acquisition of Hidden Road and the creation of Ripple Prime, a unified institutional platform. When combined with the latest crypto news on CME launching XRP options and the XRP Ledger supporting tokenized credit issuance in Brazil, it is clear that XRP’s post-crash performance is driven by fundamentals, rather than hype.