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XRP Sinks Below $2 After Flash Crash as $40 Million in Longs Are Liquidated

Sustained spot‑ETF inflows plus new licenses contrast with bearish technicals signaling seller control.

Overview

  • XRP plunged to about $1.847 in a Jan. 19 flash crash, extending a multi‑session slide and leaving the token trading under the $2 threshold.
  • Roughly $40 million in XRP positions were liquidated in hours, mostly longs, with broader crypto liquidations reported near $864 million over 24 hours.
  • Spot XRP ETFs have continued to take in money since November launch, with cumulative assets above roughly $1.5 billion and a recent week adding about $56 million, up 47% week over week.
  • Macro strain intensified after President Trump announced 10% tariffs on several European nations starting Feb. 1, while a delayed Senate Banking Committee markup on crypto market structure added uncertainty.
  • Analysts remain divided, with technical calls warning of a corrective path toward $1.30–$1.40 even as long‑term scenarios cite regulatory wins and ETF demand, including a Standard Chartered forecast of $12.50 by 2028.