After Crypto Flash Crash, Is XRP A Buy?

alfernec / Shutterstock.com

The October 10th crypto flash crash, which wiped out nearly $20 billion in leveraged positions, shocked investors across the crypto market. XRP (CRYPTO: XRP) was hit hard with a 60% downturn, which affected its momentum and disrupted short-term trends.

However, the XRP price has entered a recovery phase, fueled by Ripple’s ongoing institutional expansion. With sentiment slowly recovering, investors are weighing in on one crucial question: Is XRP still worth buying post crash? Let's find out.

XRP Price Performance Before and After the Crypto Flash Crashalfernec / Shutterstock.com

XRP Pre Crash

Before the crypto flash crash, the XRP price hovered around $2.45 and $2.80, showing a slight bullish trend that reflected its community confidence. XRP had been building momentum with reports of spot ETF approval potentially attracting between $3-$8 billion in inflows. Institutional confidence backed this move as Wall Street analysts highlighted the new XRP Reference Price Index as a signal that institutional whales are considering XRP as a legitimate investment option. This news triggered optimism across the broader crypto market, with XRP predictions pointing towards a surge to $4.

Adding to the momentum was Ripple's partnered with Bahrain Fintech Bay with the goal to providing digital asset custody and broadening the reach of the RLUSD stable coin in the Middle East. The deal marked a strategic push as liquidity rose and XRP’s daily trading volumes averaged $170 million, with the crypto reaching $2.95 in early October.

XRP Post Crash

XRP’s rally stalled following the crash. As many leveraged positions saw sharp liquidations, XRP wasn’t left out, seeing a 60% downturn from its local highs to trade at $1.25. This downturn temporarily removed all the bullish optimism created by the news of XRP’s ETF approvals and tested its long-term support levels. However, despite the downturn, it proved to be a strategic moment for some investors as whales known to buy the dip acquired XRP massively around the $1.30-$1.50 zone.

After the crash, the XRP price has recovered faster than most cryptos. The crypto has recovered to a price point of around $2.60 and is trading above short-term moving averages. XRP’s powerful rebound has been attributed to the Ripple Network’s strategic corporate moves, like the recent $1.25 billion acquisition of Hidden Road and the creation of Ripple Prime, a unified institutional platform. When combined with the latest crypto news of CME launching XRP options and the XRP Ledger supporting tokenized credit issuance in Brazil, it is clear that XRP’s post-crash performance is fueled by fundamentals, rather than hype.

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Is a Bullish Rally on the Horizon for XRP?alfernec / Shutterstock.com

XRP has a strong potential for a bullish rally. Looking through history, the XRP price tends to recover massively after huge sell-offs. The crypto’s technical indicators point towards early strength as XRP consolidated above $2.50 and looks set to test resistance at $2.80-$2.90.

Institutionally, Ripple’s actions are the clearest bullish signals for any savvy investor. Ripple Prime opens the door to professional-grade liquidity, and the CME’s derivatives launch puts XRP in a competitive position like Ethereum and Bitcoin. When you add that and the pre-crash ETF narrative and Bahrain Fintech Bay partnership, XRP becomes an asset that’s structurally better-positioned for growth post-crash.

A close above the $2.90 resistance could see a move to $4, fueled by institutional inflows, strategic corporate moves, and renewed investor confidence in XRP’s long-term potential.

Is XRP a Good Buy Post-Crash?

XRP’s latest price performance offers an inviting risk-reward profile. If the XRP price struggles to hold the $2.40 mark or retests $2.05, it could trigger a short-term bearish move to $1.70. While institutional demand has hit an all-time high, the declining trading volume seen on the XRP chart shows that the demand hasn’t yet translated into retail enthusiasm.

If the news of potential ETF approvals and the recent launch of Ripple Prime don’t trigger fresh inflows soon, XRP could drift sideways or slip further.

However, corporate moves, ETF exposure, and institutional adoption could trigger an extended bullish rally. For investors seeking cryptos under $5 with long-term potential, XRP remains one of the most exciting additions post-crash.

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