XRP Price Recovers 35% After Trump-Led Global Market Rout — V-Shaped Recovery Next?

XRP (XRP) has rebounded 35% from its recent lows, recovering from a sharp sell-off triggered by President Donald Trump’s new tariff policies, which shook global financial markets. The cryptocurrency is now attempting to resume its uptrend, with technical indicators suggesting a potential V-shaped recovery toward $3.47.

Buy the Dip Sentiment Takes Over XRP Market

After dipping to $1.95 amid broader market liquidations, XRP found strong support near $1.75 and reversed sharply, reclaiming the $2.39 level at the time of writing. The price action suggests buyers accumulating on dips, reinforcing the bullish momentum despite macroeconomic uncertainties.

A widening megaphone pattern, a technical formation characterized by widening price swings and increased volatility, has shaped XRP’s weekly chart, signaling increasing price volatility.

The latest bounce off the lower boundary suggests that XRP is now poised to test the upper trendline resistance near $3.47, up about 45% from the current price levels. A breakout above this level could accelerate gains toward $4.63, aligning with the 2.618 Fibonacci extension.

XRP is Mirroring Fractal That Preceded 1,000%-Plus Price Boom

XRP’s price crash, which occurred amid the broader crypto market turmoil triggered by President Trump’s tariff policies, has been compared to two historical price collapses: the March 2020 COVID-19 crash and the December 2020 SEC lawsuit dump.

According to analyst Dom, these prior events led to “generational bottoms” that marked the start of massive XRP recoveries, with gains of 200% and 1,000%, respectively.

March 2020 COVID-19 Crash

• XRP plunged 55.37% in a matter of days as global markets collapsed amid pandemic-induced panic selling.
• The sell-off led to widespread leveraged long liquidations, triggering forced selling cascades.
• However, the bottom was quickly established, and within weeks, XRP rebounded over 200%, reclaiming lost ground.

December 2020 SEC Lawsuit Crash

• When the SEC filed a lawsuit against Ripple, XRP collapsed 70.61%, dropping to $0.17 as investors feared regulatory uncertainty.
• Extreme fear and liquidations marked the bottom, creating a liquidity vacuum that allowed buyers to enter.
• Over the next year, XRP skyrocketed 1,000%, reaching nearly $2.00 by April 2021.

XRP’s 43% price drop resulted in the liquidation of nearly $98 million in leveraged long positions, mirroring past capitulation events that preceded major price recoveries.

Extreme sell-offs caused by forced liquidations often create a liquidity vacuum, leading to rapid sell-side exhaustion.

With the majority of overleveraged long positions wiped out, the market is now healthier, where organic price discovery can occur without the pressure of excessive leverage.

This reset reduces downside risks, as the absence of high leverage limits the likelihood of another cascading sell-off, setting the stage for a potential bullish reversal.