XRP Slams 37% on Flash Crash, Rebounds as US Regulators Signal Support

XRP's price experienced a violent flash crash on Saturday, erasing approximately 37% of its value in minutes. However, the token quickly rebounded and closed the day up 17%, finishing at $1.48.

The sudden collapse was triggered by a wave of forced liquidations that swept across the crypto complex, with over $1.7 billion in positions being unwound within a matter of minutes. XRP absorbed an outsized share of the damage, with roughly $500 million in long positions being forcibly closed on Binance.

The market's lopsided positioning, with long-short ratios favoring bulls by 73-74%, made it vulnerable to a sharp deleveraging when momentum stalled. The recovery was almost as swift as the collapse, with XRP climbing as high as $1.68 during the session before settling near the $1.50 mark.

The token's relative strength index now reads 85.6, deep in overbought territory, while the distance from its 50-day moving average of $1.09 has stretched to roughly 36%, a reminder of just how extended the rally has become relative to its medium-term trend.