XRP experienced a dramatic 18% surge on Friday, recovering from a recent selloff that had made it the worst-performing major cryptocurrency. The rebound occurred as Bitcoin briefly surpassed $70,000. This sudden price increase followed a period of heavy liquidations, which flushed out over-leveraged traders who were betting on further gains.

The price drop to approximately $1.14 triggered substantial liquidations, erasing roughly $26 million in short positions. This suggests the market correction was more about clearing out bullish bets than responding to new unfavorable news. The recovery is happening as Ripple promotes a more institutional vision for the XRP Ledger, including plans for permissioned markets.

The rally seems less like a sudden embrace of the institutional DeFi narrative and more like a typical crypto snapback. Analysis of futures tracking XRP reveals that retail investors were caught out. Meanwhile, the biggest traders on Binance were net short. The Binance overall account-based long/short ratio is 2.13.

Looking ahead, the market will be watching whether XRP can sustain this upward momentum. It's crucial to observe if the institutional plans will translate into lasting investor confidence. The behavior of large traders versus retail investors will also be a key factor in determining the future price trajectory of XRP.