Analyst Shares Why He Believes an XRP Flash Crash is Imminent

ExtraVod, a market commentator, recently suggested that an XRP flash crash may be imminent, but projects a possible recovery from the lows.

Notably, XRP has continued to face downward pressure since hitting a peak of $2.21 on Dec. 4 after its 8% rebound push. XRP has dropped 7.37% since then, barely holding on at $2.03, but ExtraVod believes the market has not yet seen the worst of the downtrend.

Market Liquidations

“XRP flash crash imminent,” ExtraVod said in a recent X post amid the ongoing price struggles. While he failed to divulge further information on X, the market pundit took to YouTube to explain why he believes this crash could materialize, warning of a possible “XRP emergency.”

In his video commentary, ExtraVod first called attention to recent liquidation figures. Specifically, a report from The Kobeissi Letter revealed that the crypto market had recorded $200 million worth of liquidations over the 4 hours leading to 4:13 PM UTC on Dec. 5. These liquidations came as Bitcoin broke below $90,000 to trade at $89,350.

While BTC has since recovered to $89,500 at press time, the latest data from Coinglass confirms that liquidations have surged to $412.6 million over the past 24 hours, with long positions accounting for $341 million. Amid these developments, ExtraVod says he believes the market is on the verge of witnessing a black swan event.

What Could Trigger the XRP Flash Crash

He then noted that he has observed “huge developments” on the XRP chart that foreshadow the crypto asset’s next move. Specifically, the market pundit pointed out that XRP has been witnessing bottoms at higher lows after a prolonged downtrend since April 2025. 

For context, after the downtrend that began in March, XRP bottomed at $1.61 on April 7. Further, in the next downtrend, it bottomed at $1.77 on Oct. 10. Meanwhile, XRP observed subsequent bottoms at $1.81 on Nov. 21, and then at $1.98 on Dec. 1. 

ExtraVod noted that these bottoms are actually too close to each other, and suggested that the reason XRP may be experiencing this trend may be because traders have continued to enter massive positions and place their stop losses under each of these bottoms. 

Highlighting this trend, the market analyst projected that soon, market makers could trigger a price crash that wipes out these positions, as massive liquidity has formed at these lows. This is the reasoning behind his prediction of an “imminent flash crash.” 

However, he sees this as a favorable event. “The faster they do it, the better it is for us,” ExtraVod said. According to him, once such a massive crash occurs and wipes out all this liquidity, XRP could finally get a chance to breathe and push forward instead of remaining within the current position, where it has persistently fluctuated at lower levels around $2.

XRP Forming Hidden Bullish Divergence

He then shifted his focus to the XRP RSI, calling attention to a hidden bullish divergence on the weekly chart. This hidden bullish divergence formed as the XRP price recorded a higher low while the RSI formed a lower low. 

For context, XRP’s first bottom on the weekly chart was $0.5 in November 2024. Meanwhile, the second bottom could rest around the region of the projected flash crash, forming a higher low. However, within this period, the RSI has formed an initial bottom of 44 in November 2024, while the next bottom could be below the 30 mark, marking a lower low.

Notably, a hidden bullish divergence typically indicates that the ongoing uptrend could continue. Since November 2024, XRP has been on an uptrend, and this trend may persist after the ongoing short-term noise. According to ExtraVod, once the flash crash triggers an RSI drop to oversold levels, XRP could recover to higher highs, leading to a rise in the RSI.