XRP recently recorded a weekly gain of over 46%, reaching $1.70—its highest price in more than seven months and making it the best-performing large-cap asset over the period. However, the asset experienced a sharp 14% pullback, closing the day at $1.46 following a flash crash that disproportionately affected XRP compared to other major assets like Bitcoin and Ethereum.
According to data from CoinGlass, the downturn resulted in more than $250 million in long positions being liquidated, accounting for over 72% of all market liquidations. Despite the turmoil, some analysts maintain expectations that the price could move toward $2 by the end of the third quarter.
Ahead of the pullback, on-chain metrics indicated rising market optimism. The Binance funding rate for XRP climbed to a two-week high of 0.01%, reflecting an increase in aggressive long positions deployed by traders. While positive funding rates are generally viewed as bullish, a rapid rise can signal market vulnerability when too many participants open long positions simultaneously.
The recent drawdown and wave of long liquidations serve as a reminder of market risks following a substantial weekly rally. Analysts continue to monitor whether the setup could lead to a deeper correction or a bull trap before any sustained movement toward the $2 target.
