Crypto Crash Is Over, As Pepe Coin and Ripple XRP Bounce 50% Off the Lows

Smaller cryptocurrencies had a brutal crash yesterday, but the reversal was as quick, with Ripple XRP gaining 50% off the lows and Pepecoin Pepe also bouncing.

Smaller cryptocurrencies crashed on Friday, but the reversal was just as quick, with Ripple XRP gaining 50% off the lows and Pepecoin Pepe also bouncing.

The altcoin market experienced a sharp downturn on Friday as news of impending US tariffs triggered a wave of selling pressure that escalated over the weekend. Ripple (XRP) plunged below key support levels, initially breaking under $3 on Saturday before sliding further to $2.50 on Sunday. As selling intensified, XRP dipped below $2.50 and even breached the major $2 support zone, briefly hitting $1.76 before a swift reversal higher. By the end of the day, XRP had rebounded by exactly $1, closing at $2.75 as market sentiment improved.

The shift in risk appetite came after reports that US tariffs on Canadian and Mexican imports had been put on hold, boosting risk-sensitive assets like commodity currencies and cryptocurrencies. XRP/USD formed a hammer candlestick pattern, often a bullish reversal signal, indicating a potential recovery after the earlier sharp declines during the Asian trading session.

Besides that, we heard that Ripple Labs transferred 700 million XRP tokens into escrow on February 2, 2025, potentially influencing XRP’s price movement. This action came amid widespread declines in the crypto market, likely aimed at mitigating further downside pressure as bearish sentiment gripped the sector.

However, the market staged a broader recovery, with Bitcoin (BTC) surging 10% off the lows, reclaiming $100K after dipping to around $90K following the recent crypto crash. Meanwhile, Pepe Coin (PEPE) also surged, gaining over 25%, after rebounding from $0.000008 and marking one of the strongest recoveries among major altcoins.

However, we will see if PEPE buyers have enough strength to push above the moving averages again. With improving sentiment and technical support holding, traders will be watching for sustained upside momentum in the coming sessions.