XRP News Today: XRP drops nearly 6% as Ripple moves $600M in surprise token transfer

A significant shift in the XRP market has emerged, marked by large-scale movements of the digital asset and increased activity in the derivatives space. On July and August 2025, Ripple, the San Francisco-based fintech firm behind XRP, executed a major transfer of over $600 million worth of XRP in a single transaction, reported by Whale Alert and widely covered by crypto news platforms [1]. This move, occurring outside of Ripple’s regular monthly token unlock schedule, has sparked investor concerns about a potential sell-off and added to the asset’s already heightened volatility [1].

This unusual activity coincided with a notable drop in XRP’s price. On August 18, XRP fell nearly 6%, trading between $2.95 and $3.00, breaking below the critical $3.00 level [2]. Such movements have raised questions about Ripple’s token management and its impact on price stability. Analysts have long emphasized the importance of predictable token releases in managing market expectations, and the recent large-scale movement is seen as a departure from this norm [1].

Amid this turbulence, the XRP options market saw a surge in activity. According to Amberdata, over one million XRP call options with a $4 strike price were transacted on Deribit, set to expire on December 26 [1]. These contracts, each consisting of 1,000 XRP, were reportedly executed by a major player. The $4 call options represent a bet that XRP will exceed this price point by the expiration date.

However, this high-profile block trade may not reflect a bullish outlook. Analysts suggest the transaction aligns with a covered call strategy—a method used to hedge current XRP positions. This approach involves writing a call option above the current market price and using the owned XRP to back the position. While this generates income through option premiums, it also caps potential gains if prices rise significantly [1].

Lin Chen, Deribit’s Asia Head of Business Development, noted that the trade appears to be executed by a major investor following a covered call approach [1]. This method is commonly used by BTC investors and has gained traction as a way to derive additional income from long-term holdings while maintaining a neutral stance on market direction [1].

Despite the recent bearish trend, XRP remains a subject of cautious optimism. OpenAI’s ChatGPT model has projected a price target of $10 for XRP, with a potential for $15 in a strong bull market, provided the asset retests its previous highs [3]. These forecasts underscore the token’s role in cross-border payments and its potential as a fast, cost-effective alternative to traditional systems like SWIFT [4].

Yet, the regulatory landscape continues to cast a shadow over XRP’s trajectory. The U.S. Securities and Exchange Commission (SEC) has delayed decisions on several XRP ETF applications until October, adding uncertainty for investors who had anticipated a clearer regulatory path [5]. In the interim, XRP has traded near $3, with mixed signals from technical indicators regarding its immediate direction [2].

Notably, while retail traders have shown panic, large holders—commonly referred to as “whales”—have been accumulating XRP. Reports indicate that approximately 440 million XRP were scooped up during the same period [2]. This suggests that major stakeholders may be positioning for a potential bottoming process or a longer-term price recovery.

Ripple continues to expand its ecosystem, with recent initiatives aimed at boosting XRP’s adoption in financial services. The company has introduced leveraged XRP products, indicating growing institutional interest in the asset [4]. Whether these developments translate into sustained price gains will depend on a combination of regulatory clarity, macroeconomic conditions, and continued institutional adoption [4].

The market reaction to Ripple’s large XRP transfer highlights the influential role of institutional players in shaping short-term price dynamics. As the asset stabilizes above $3, the interplay between strategic transactions, regulatory developments, and market sentiment will remain pivotal in determining XRP’s future trajectory.

Source:

[1] https://finbold.com/ripple-just-moved-over-600-million-xrp-incoming-sell-off/

[2] https://m.economictimes.com/news/international/us/xrp-crashes-big-6-today-whales-scoop-440m-xrp-despite-retail-panic-doom-or-hope-ahead-whats-next-for-ripple/articleshow/123365106.cms

[3] https://www.tradingview.com/news/cryptonews:779002823094b:0-openai-s-chatgpt-predicts-the-price-of-xrp-xmr-and-ada-after-recent-market-crash/

[4] https://www.ainvest.com/news/xrp-news-today-xrp-challenges-swift-fast-cross-border-payments-regulatory-scrutiny-2508/

[5] https://www.financemagnates.com/trending/sec-pushes-back-multiple-altcoin-etf-decisions-to-october-as-xrp-trades-near-3/