XRP's 18% Rebound: A $26M Liquidation Flush and Whale Accumulation

XRP's sharp rebound is a classic case of a mechanical market reset. The token collapsed to roughly $1.14 in Thursday's selloff, making it the worst performer among major tokens. It then staged a 24-hour rally, climbing about 18% to trade near $1.49 on Friday. This move came as Bitcoin briefly rose over $70,000, reversing earlier declines.

The immediate catalyst was a massive liquidation cascade. On Thursday, $775 million in leveraged positions were wiped out across the market. For XRP specifically, this triggered a flush of roughly $26 million in short liquidations in the past 24 hours. The key detail is the imbalance: this was a net short flush, not a long squeeze.

The implication is clear. This wasn't a reaction to fresh bad news. It was the market mechanically clearing out crowded bullish bets as prices fell. Once those forced sellers were gone, selling pressure eased and XRP snapped back violently. The rally looks less like a vote of confidence in Ripple's institutional pitch and more like a standard crypto bounce after a leverage wipeout.

Whale Accumulation and Network Engagement Signals

The rebound's quality hinges on whether new capital is flowing in. The on-chain data suggests it is. In the past 18 hours, the XRP Ledger saw 1,389 separate $100K+ whale transactions, the highest count in four months. This is a clear signal of large, strategic accumulation during the dip, not just speculative trading.

More telling is the surge in network participation. The number of unique addresses on the XRP Ledger surged to 78,727 within 8 hours, hitting a six-month high. This spike indicates fresh activity from new users or wallets, expanding the base of holders beyond the existing whale cohort.

The key implication is that this isn't just a bounce of existing holders moving coins. The combination of massive whale buys and a ballooning unique address count points to a broadening of interest. This kind of fresh participation can provide the underlying liquidity and demand needed to support a sustained price move, rather than a fleeting pump.

What to Watch: Price Levels and Volume

The forward setup hinges on whether the recent surge in whale activity and on-chain engagement is a one-time reset or the start of a new trend. The key signal will be if the volume of large transactions and the count of unique addresses begin to slow as prices rise. These metrics have already spiked to multi-month highs, indicating a flush of leverage and fresh accumulation. If they plateau or decline while the price climbs, it suggests the major strategic buying is complete and the bounce may be running out of steam.

A critical technical level to watch is a sustained break above $1.50. The price has already recovered to that mark, but the rally's strength will be proven by volume. A move above $1.50 on high, sustained volume would confirm institutional demand is taking hold. Failure to hold or break above that level, especially on waning volume, would signal the rally is over and the path of least resistance is back down.

The broader market's health remains a key external risk. XRP's volatility is a direct function of the larger crypto market's stability. The token's recent rebound coincided with Bitcoin briefly rising over $70,000, but the underlying pressure is clear. Bitcoin had been in a three-day selloff, testing lows not seen since late 2024. If Bitcoin falters again, it will likely drag XRP lower, regardless of on-chain accumulation. For now, the market's ability to hold above $70,000 is a necessary condition for XRP to build on its current gains.