XRP experienced a sudden flash crash on January 19, 2026, as overleveraged traders were caught off guard in a dramatic market move. The token dropped to an intraday low of $1.84 before partially recovering to around $1.97.
Data from CoinGlass shows the XRP derivatives market suffered $522,900 in long liquidations versus just $6,040 in shorts over a 12-hour window. This 8,700% imbalance highlights that most traders were betting on a breakout above $2.00.
Analysts say the crash followed a “synthetic stablecoin” pattern, where XRP’s price held unusually steady near $2.05 in the days prior. Many traders took this as a reliable floor and entered high-leverage long positions.
The selloff coincided with a major technical reversal. Just 48 hours after a Golden Cross appeared, XRP saw a Death Cross form on 4-hour and daily charts, negating weekend gains and wiping out $1.4 billion in bullish capital.
Trading volume surged 167% to $3.68 billion, signaling intense activity from both automated trading bots and panicked retail investors. The sudden spike reflects the sharp liquidity squeeze caused by forced liquidations.
Institutional sentiment appears less affected. Spot XRP ETFs, which launched in late 2025, continue to attract inflows, totaling $1.37 billion. Analysts remain divided: Standard Chartered maintains an $8.00 target for late 2026, while Finance Magnates warns of a possible further drop toward $1.25 if key support between $1.80 and $1.90 fails.
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