Analysts reveal the largest liquidation candle in XRP's history, is the most painful trading moment approaching?

Crypto Assets analysts revealed the worst-case scenario that XRP might face before a potential significant pump, with charts displaying the “largest capitulation candle in history,” causing a stir in the Ripple community. He identified a massive liquidation line representing the moment when over-leveraged traders are forced out of the market. Although such capitulation events are brutal, they usually serve to clean up and reset the market.

19 Billion Dollar Epic Liquidation Candle Defines Cycle Bottom

(Source: Trading View)

At the beginning of this month, the Crypto Assets market experienced one of the largest liquidation events in history. Over 19 billion dollars in leveraged positions evaporated within a few hours, triggering panic across major exchanges. XRP was one of the stocks hit hardest, first plummeting sharply and then quickly rebounding, catching many traders off guard. The scale of this liquidation is extremely rare in Crypto Assets history, second only to the “519 Crash” in May 2021.

On the 2-hour chart of Bitstamp, Steph discovered a huge liquidation line marking a critical turning point. He referred to this candlestick as the largest candlestick in history, representing the moment when over-leveraged traders were pushed out of the market. This candle is characterized by an extremely long lower shadow and a subsequent quick rebound, indicating that the price experienced volatile fluctuations in a short period.

Although such capitulation events are brutal, they usually serve the purpose of clearing and resetting, eliminating excessive leverage and paving the way for a stronger and more sustainable upward trend. When a large number of leveraged long positions are forcibly liquidated, the potential selling pressure in the market significantly decreases. This “cleaning” makes subsequent rises healthier, as participants are mainly spot holders rather than high-leverage traders.

From a technical perspective, the chart shows that XRP has fallen into a deep liquidity zone in the price forecast, followed by a strong rebound—a typical market reset. As stop-loss triggers and margin call notifications piled up, the price of XRP fell into the oversold area. Within hours, institutional buy orders intervened, triggering a dramatic reversal. This V-shaped reversal is evidence of strong buying interest, indicating that large participants are actively accumulating at low levels.

Steph explained that this trend may define the lowest point for XRP in the current cycle—a potential maximum pain point before a strong upward momentum. By eliminating weak positions and overextended positions, the market effectively creates a fair competitive environment, setting the stage for a more stable recovery. The maximum pain point is a term used in options trading, referring to the price level that causes the most participants to incur losses. When the market reaches this point and rebounds, it often marks a reversal of the trend.

Market Sentiment Shift and Signs of Recovery After Liquidation Events

This pattern is not unique to XRP in price predictions; historically, similar liquidations have marked the end of bear markets for other major Crypto Assets, and explosive rebounds typically follow once market confidence is restored. Bitcoin rebounded from $3,800 to over $60,000 after the “Black Swan” event on March 12, 2020. Ethereum reached an all-time high within months after the “519 Crash” in May 2021. These precedents provide a reference framework for the current situation of XRP.

Despite the initial panic, market sentiment has begun to shift. Trading volume has rebounded, open interest has returned to normal, and long-term holders seem to be increasing their positions again. These are often early signs of a recovery phase, indicating that the worst may be over. The recovery of open interest means new traders are entering the market, and market activity is picking up. The increase in long-term holders suggests that smart money finds the current prices attractive.

However, Steph warned that volatility will remain high. The market may continue to test investors' resolve before confirming a sustained upward trend. He believes that in this environment, the key to success is not predicting every price movement, but maintaining emotional discipline in the face of uncertainty. This advice is extremely important, as many investors make wrong decisions during market panic, selling at the bottom and chasing pumps at the top.

Three Major Market Changes After the Liquidation Event:

• Margin Clearing: Over-leveraged speculators are removed, resulting in a healthier market structure.
• Emotional Reset: After panic reaches its peak, market sentiment begins to shift from extreme pessimism to cautious optimism.
• Liquidity Reconstruction: Institutions and long-term holders are accumulating at low levels, providing buying support for the rebound.

From the perspective of XRP price prediction, this liquidation event may become a key turning point in this cycle. If Steph's analysis is correct, XRP has already experienced the largest release of downward pressure, and the subsequent upward path will be smoother. However, confirming this judgment requires the price to continuously stay above the liquidation low and gradually break through key resistance levels.

Market sentiment changes can also be observed from social media emotions. During the liquidation event, the X platform was filled with panic selling and negative comments about XRP. However, as the price rebounded, the tone of the discussions began to shift towards “buying opportunity” and “cycle bottom confirmation.” This emotional change often leads price trends by days to weeks, providing sharp observers with a reference for entry timing.

Psychological Preparedness and Risk Management for XRP Holders

The recent price trend of XRP is not just a technical event but a psychological test. The “largest liquidation candle in history” revealed the extreme emotions driving the Crypto Assets market: fear, panic, and doubt. However, as Steph emphasized, these moments of Capitulation often herald a market transformation. If his analysis is correct, XRP may have already faced the most severe downside risks. The future may mark the beginning of a long-awaited rebound — but only those who are mentally prepared and able to withstand the upcoming volatility can achieve this.

Analysts tell XRP holders: Are you mentally prepared for this situation? The deeper implication of this question is that even if the technicals indicate a bottom has formed, the subsequent rebound process will still be filled with volatility and challenges. XRP may repeatedly test support levels in the weeks following the confirmation of a bottom, with each pullback triggering panic among some holders. Only investors who truly understand market cycles, possess firm conviction, and have a clear strategy can survive and profit in this environment.

Mental preparation includes several aspects. First, accept that volatility is normal. The intraday volatility of XRP can reach 10% to 20%, which is very common at the beginning of a bull market. If you cannot withstand such volatility, you should reduce your position or choose assets with lower volatility. Second, develop a clear strategy. Is it to hold long-term waiting for a target of 3 to 5 dollars? Or is it to trade in segments to earn the price difference? Different strategies correspond to different operational methods, and a chaotic strategy will only lead to emotional decision-making.

Third, set stop-loss and take-profit orders. Even if you are optimistic about the long-term outlook for XRP price predictions, you should set stop-loss orders to guard against misjudgments. At the same time, take profits in batches when the price pumps, avoiding greed that leads to missing the best exit opportunity. Fourth, control the position size. Only invest funds that you can afford to lose entirely, to avoid being unable to withstand fluctuations due to an overly heavy position, ultimately panicking and capitulating.

Steph believes that in this environment, the key to success is not predicting every price movement, but maintaining emotional discipline in the face of uncertainty. This advice reveals the essence of successful trading: it's not about accuracy in predictions, but about emotional management and risk control. The best traders do not always make the right judgments; instead, they quickly cut losses when they are wrong and let profits run when they are right.

The XRP market once again reminds investors why it is one of the most challenging assets for investor sentiment in the Crypto Assets space. XRP's volatility is significantly higher than that of Bitcoin and Ethereum, with its price movements being more extreme and unpredictable. This characteristic attracts aggressive investors seeking high returns, but also eliminates weaker hands who cannot withstand the pressure. For investors choosing to hold XRP, it is essential to understand that this is a marathon, not a sprint; it requires not only confidence in the project but also a test of one's mental resilience.

If his XRP price prediction analysis is correct, XRP may have already faced the most severe downside risk. The future may be the beginning of a long-awaited rebound—but only those who are mentally prepared and able to withstand the upcoming volatility will enjoy the ultimate fruits of victory. History shows that the greatest gains often belong to those who hold on to their beliefs in the darkest of times. The question is: Are you ready?