Financial markets have a way of punishing impatience before rewarding conviction. When prices collapse suddenly, most traders panic, yet history shows that such violent “flushes” often plant the seeds of massive recoveries.
That paradox forms the backbone of a renewed discussion led by prominent crypto analyst JD, who revisited one of XRP’s most defining historical moments — a 2017 liquidity-driven sell-off on Binance that preceded the token’s most spectacular rally on record.
The 2017 Turning Point
Late 2017 marked a critical inflection in XRP’s journey. The cryptocurrency, which had spent much of that year trading below $0.01, suddenly caught the world’s attention as its price surged past $3.80 by January 2018 — an increase of over 35,000% in less than twelve months. But few remember that before this explosive rise, XRP experienced a sharp, liquidity-driven crash on Binance.
According to historical market data, the drop was triggered by a large sell order that hit a relatively thin order book, causing prices to momentarily plunge. This event, largely overlooked at the time, proved to be the very setup that allowed strong hands to accumulate XRP cheaply — the kind of accumulation phase that often precedes parabolic rallies.
$XRP dumped on Binance due to low liquidity w/large sell order in 2017
Biggest dump led to the BIGGEST RISE in XRP history! Ignore all MOONBOY hype that keeps u BROKE! (Dumb Money)
I called bottom at 0.28 w/TA, I'm calling TOP next using TA! Then HISTORICAL RUG PULL CRASH!… pic.twitter.com/3xJ52DzBom
— JD
(@jaydee_757) October 14, 2025
How a Liquidity Dump Sparked a Record Rally
JD’s latest analysis on X explains the structural logic behind such events. When a market experiences low liquidity, even a single oversized sell order can drain available bids, leading to what’s known as a flash dump. Stop losses are triggered, leveraged positions are liquidated, and weaker participants exit in panic.
Once the panic selling subsides, market-makers and professional traders step in to absorb the excess supply, creating what technicians call a liquidity pocket. As demand rebuilds, price recovers rapidly, often overshooting prior resistance levels. This pattern played out dramatically in late 2017 — the “biggest dump” that JD referenced directly preceded XRP’s “biggest rise” in history.
Lessons From JD’s Technical Perspective
JD, who has built a reputation for precision in technical analysis (TA), emphasized that markets move in predictable cycles of fear and greed. He revealed that he had called the bottom at $0.28 based purely on TA and now intends to identify the top of the current cycle using similar metrics. His message was clear: traders must learn to separate emotional hype from technical signals.
He also warned against “moonboy hype” — the social media frenzy that often traps retail investors at local tops. According to JD, disciplined traders rely on liquidity, volume, and structure, not viral optimism. The lesson from 2017 remains relevant today: the most profitable opportunities often appear in moments of maximum pessimism.
Why History Still Matters for XRP
While markets have evolved and liquidity conditions on major exchanges like Binance are far stronger today, the underlying market psychology remains unchanged. Flash dumps can still occur in isolated trading pairs or low-volume conditions, temporarily distorting prices. However, these moments often offer the best long-term entries for informed investors.
XRP’s 2017 experience stands as a vivid reminder that the deepest sell-offs can precede the most explosive rallies. Whether or not history repeats, the principles remain — liquidity, timing, and emotional control determine who profits when the market turns.
Final Thoughts
JD’s analysis underscores an enduring truth: the crypto market rewards those who understand structure, not sentiment. The “biggest dump” that scared many away in 2017 turned out to be the prelude to XRP’s greatest bull run.
As JD prepares to call the next top based on technical analysis, his perspective serves as a powerful reminder that every market collapse hides an opportunity — if one has the patience and clarity to see it.
Disclaimer: This content is meant to inform and should not be considered financial advice. The views expressed in this article may include the author’s personal opinions and do not represent the opinion of the publication. Readers are urged to do in-depth research before making any investment decisions. Any action taken by the reader is strictly at their own risk.