Cryptocurrency XRP experiences a 7% drop following a $437 million sell-off, triggering over $1 billion in liquidations across the crypto market.
In the crypto market landscape, XRP, the third-largest digital asset by market capitalisation, has recently experienced a significant price drop. The decline, which occurred over several consecutive sessions, was primarily due to profit-taking after a spectacular rally following Ripple's legal settlement with the SEC.
The price of XRP plummeted from $3.34 to $3.10, marking a 8% decrease. This drop was further exacerbated by broader market weakness and technical bearish signals. Bitcoin and other altcoins also saw a decline, creating a risk-off sentiment in the market.
Elevated selling pressure during Asian and European trading hours, combined with these market conditions, contributed to the sharp decline in XRP's price. Additionally, nearly 94% of XRP holders were sitting on profits, a situation historically known to trigger sell-offs as traders secure gains.
XRP faced a bearish descending triangle pattern on daily charts, indicating a possible further drop around 18% to roughly $2.40. Emerging technical signals like increased short interest, falling net longs, and volumes below $3 suggest downside risks. Inflation concerns and delays in SEC decisions on XRP-related ETFs also contributed to the downside pressure.
However, a strong buying reaction during the trading session helped limit XRP’s intraday losses and caused a minor price recovery. This late-session buying softened the price decline but did not prevent the overall drop stemming from broader selling pressure.
The total value of XRP in circulation currently stands over $16 billion, and the market cap, calculated by multiplying the price by the total supply, has also increased during the recovery. The volume of XRP traded during the recovery period increased significantly, and the number of active wallets holding XRP has shown a slight increase.
Despite the renewed interest from large holders, the buying was not limited to them but also extended to retail investors. However, this buying activity was largely interpreted as short-term profit-taking rather than a reversal of the downtrend.
In conclusion, the sharp decline in XRP's price was a result of profit-taking after a spectacular rally, broader market weakness, technical bearish patterns, regulatory and inflation concerns, and late-session buying providing only a minor rebound. This combination led to XRP’s sharp price falls and large liquidations, with late trading signs of buying helping only modestly.
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[4] FX Empire. (2025, August 15). XRP Price Forecast: XRP/USD to Test $2.40 as Bearish Descending Triangle Forms. [online] Available at: https://www.fxempire.com/news/currency-news/xrp-price-forecast-xrp-usd-to-test-2-40-as-bearish-descending-triangle-forms-135742.html
[5] CoinGape. (2025, August 16). XRP Price Analysis: Inflation Concerns and SEC ETF Delays Weigh on XRP. [online] Available at: https://coingape.com/xrp-price-analysis-inflation-concerns-and-sec-etf-delays-weigh-on-xrp/
- Despite XRP's recovery, the total value of XRP in circulation and market cap have increased, suggesting that some investors might be taking advantage of the situation for short-term financing or investing.
- The downtrend in XRP has caused large liquidations, and the combination of profit-taking, market weakness, technical bearish patterns, regulatory and inflation concerns has made it challenging for buyers to sustain a bullish momentum in the finance sector, particularly in the investing of XRP.
