XRP fell sharply early Thursday plunging 11.2% to $3.08, as widespread market liquidations, regulatory concerns, and Bitcoin dominance weighed heavily on the cryptocurrency market. XRP’s drop is among the steepest in the altcoin space this week, reflecting growing risk aversion among both retail and institutional investors.
XRP drops below $3.10 as market volatility intensifies
In a 24-hour span, XRP lost more than 11% of its value, briefly slipping below the psychological $3.00 level before stabilizing. The decline came amid a broader 1.4% drop in global crypto market capitalization, now sitting at $3.88 trillion.
Key factors behind the decline:
- $634 billion in derivatives liquidated over 11 consecutive days
- Upbit released 75 million XRP into circulation, flooding the market with supply
- Bitcoin dominance surged to 60.88%, pulling liquidity away from altcoins
- Ethereum’s validator exit crisis triggered $2.34 billion in ETH unstaking
- Geopolitical tension from new U.S. tariff threats spooked risk markets
Upbit token dump and leveraged trades trigger liquidation wave
The South Korean exchange Upbit reportedly released 75 million XRP tokens into circulation, which intensified downward price pressure and fueled a $105 million liquidation of long positions. Analysts view the move as a coordinated institutional repositioning rather than retail-driven panic.
Bitcoin’s resilience—only down 0.55% in the same period—amplified capital rotation out of altcoins like XRP. According to the Altcoin Season Index, which currently reads 43/100, XRP is part of a wider altcoin underperformance trend as traders seek lower-risk assets during corrections.
Trump tariff talk deepens crypto anxiety
Political developments further dampened investor sentiment. On Truth Social, President Donald Trump renewed threats to impose higher tariffs on nations resisting U.S. trade demands, reigniting fears of global economic disruption. This “risk-off” mood pressured all major digital assets, with Bitcoin initially rallying before retreating.
Treasury Secretary Scott Bessent attempted to calm markets by teasing potential U.S.-EU trade agreements, but XRP failed to recover—highlighting its heightened sensitivity to macroeconomic shifts.
Technical breakdown threatens deeper losses
Chart analysts warn that XRP’s breach of the $3.00 support constitutes a “significant technical failure.” The emergence of a death cross—where the 50-day EMA falls below the 100-day EMA—on shorter timeframes suggests bearish momentum could continue, possibly pushing the token toward $2.60 if key levels aren’t reclaimed.
- XRP trading volume surged during the drop
- $93 million in XRP longs were wiped out, second only to Ethereum
- Historical resistance suggests $2.60 as the next strong support
SEC delays shake institutional confidence
Adding to XRP’s woes, the U.S. Securities and Exchange Commission delayed its decision on the Bitwise 10 Crypto Index Fund ETF, a move interpreted as a setback for crypto regulation clarity. Though XRP wasn’t directly targeted, investors viewed the delay as a sign that institutional adoption hurdles remain high, particularly for non-Bitcoin assets.
XRP outlook: Long-term hope vs. short-term headwinds
Despite the sharp downturn, some analysts remain cautiously optimistic. Standard Chartered maintains a $5.50 year-end price target for XRP, assuming macro conditions and regulatory clarity improve.
But in the near term, risks remain elevated:
- Continued algorithmic selling
- Weak altcoin sentiment
- Lack of regulatory momentum
- Institutional risk-off positioning
For XRP to regain ground, it must close convincingly above the $3.00 mark and see improving sentiment in the altcoin sector. Until then, volatility is likely to persist.
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