XRP Analysts Revisit Capitulation Pattern After $19.6B Liquidation Wave

Cryptowzrd links the 2025 capitulation to 2017, when a steep drop was followed by a sharp six-week breakout.

Egrag cites historic XRP declines of 99%, 77%, and 78%, noting past crashes often came before trend changes.

Current support near $2.00–$2.40 and resistance at $3.20–$3.50 mark key levels for any continuation attempt.

A fresh wave of liquidations has renewed attention on XRP’s long-term price structure and past recovery patterns. Data from the recent market-wide crash shows $19.6 billion in positions were wiped out, dwarfing previous liquidation events tied to the COVID crash and the collapse of FTX

Analysts tracking the asset’s historical price reactions now point to similarities between earlier capitulation events and today’s conditions. The discussion centers on whether a repeat of past recoveries could follow this decline, a question raised by chart watchers reviewing multi-year structural trends.

Historical Structures Comparisons

According to Cryptowzrd, previous downturns did not mark final tops, but instead preceded major upside stretches. His review of XRP’s 2017 structure notes a capitulation wick followed by an aggressive six-week rise that triggered a parabolic breakout

Source: Crypowzrd

At the time, XRP had consolidated inside a descending triangle from 2014 to early 2017, with price movement ranging between roughly $0.005 and $0.008 before the surge. He identifies a second phase beginning after 2018

In that period, the asset compressed inside a large symmetrical triangle between $0.20 and $1.50. That structure broke to the upside in late 2023 and carried into early 2025, when price reached about $3.10. The current phase, labeled “Capitulation of 2025,” includes a retracement toward a support zone around $2.00 to $2.40. An orange ellipse on the chart highlights that region.

Current Setup and Potential Trigger Levels

The same analysis points to a short term descending consolidation. It resembles a flag or pennant that could precede continuation if previous fractal behavior repeats. A projected path on the chart shows a move beyond $4.00 to $5.00 if price clears resistance between $3.20 and $3.50. However, Cryptowzrd notes that a drop below $2.00 could extend the corrective phase toward $1.50 instead of triggering immediate continuation.

Egrag Crypto offers a separate breakdown of past declines. He lists a 99% fall during December 2017, a 77% drop tied to the SEC lawsuit in 2021, and a 78% decline recorded in the latest move. His comparison of liquidation volumes shows $1.2 billion during the COVID crash, $1.6 billion during the FTX collapse, and $19.6 billion in the most recent event.

Analyst Perspective on Aftermath

Egrag framed the reaction as a test of sentiment rather than a conclusion of trend. His comments emphasized that previous crashes preceded new phases in price action. He stated that each downturn triggered decisions among holders, who either exited or waited for possible recovery phases. While he did not provide directional calls, his remarks emphasize that historical behavior often followed large liquidation spikes.

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