XRP’s 10% Plunge: Scams, Exchange Concentration, and Legal Ambiguity Collide

Source: [1] XRP price crash prediction and Ripple warning: XRP price … (https://economictimes.indiatimes.com/news/international/us/xrp-price-prediction-todays-10-crash-shakes-investors-is-something-bigger-unfolding-beneath-the-surface-heres-what-ripples-ceo-urgently-warns/articleshow/122882497.cms) [2] Ripple CEO Issues ‘Massive’ Trillion Dollar Prediction ... - Forbes (https://www.forbes.com/sites/digital-assets/2025/03/27/ripple-ceo-issues-massive-trillion-dollar-prediction-amid-bitcoin-xrp-and-crypto-price-swings/) [3] Ripple CEO Issues Urgent Warning: XRP Investors Must Read This … (https://www.btcc.com/en-US/square/Newsbtc/697402) [4] XRP in 2025: Regulation, Adoption, and What's Next — VALR (https://blog.valr.com/blog/xrp-in-2025-regulation-adoption-and-whats-next) [5] XRP Liquidity Risks Signal Volatility and Investor Caution (https://thecurrencyanalytics.com/altcoins/xrp-liquidity-strains-raise-red-flags-for-crypto-investors-198129) [6] XRP Liquidity Concentration in Three Exchanges: An In-depth … (https://marketsgonewild.com/crypto-news/2025/06/26/xrp-liquidity-concentration-in-three-exchanges-an-in-depth-analysis-of-risks-for-investors/) [7] Where Will XRP Be In 5 Years? Price Prediction and … (https://www.forbes.com/sites/digital-assets/article/where-will-xrp-be-in-5-years/) [8] XRP Status in Jeopardy? Ripple CEO Exposes Key Court Turning … (https://coincentral.com/xrp-status-in-jeopardy-ripple-ceo-exposes-key-court-turning-point/) [9] Is XRP Legal? A Global Overview of XRP’s Legal Status … (https://xrpauthority.com/education/xrp-regulations-worldwide-compliance-legal-status/is-xrp-legal-a-global-overview-of-xrps-legal-statusa-breakdown-of-xrps-legal-standing-in-different-countries-2/) [10] Why XRP faced a brutal wipeout within 4 hours? Top reasons (https://economictimes.indiatimes.com/news/international/us/xrp-price-prediction-2025-why-xrp-faced-a-brutal-wipeout-within-4-hours-top-reasons-for-crash/articleshow/124091670.cms)

XRP Price Plummets 10.34% Amid Liquidations and Scam Warnings as Ripple CEO Urges Vigilance

XRP, the digital asset underpinning Ripple’s blockchain payments network, experienced its largest single-day decline since April 2025, dropping 10.34% to $2.99 on July 24, 2025. The sharp sell-off was driven by mass liquidations totaling $89 million in long positions, particularly on South Korean exchange Upbit, where 75 million XRP tokens were dumped within 24 hours. Analysts attributed the volatility to a combination of profit-taking after a recent rally, broader crypto market corrections, and heightened regulatory uncertainty following the U.S. Securities and Exchange Commission’s (SEC) ongoing legal battle with Ripple.

Ripple CEO Brad Garlinghouse intensified concerns by issuing a stark warning about $2.1 billion in crypto scams targeting XRP holders in 2025. Scammers exploited market momentum through deepfake videos of executives, phishing websites, and fake YouTube livestreams offering XRP giveaways. Garlinghouse emphasized that Ripple does not conduct promotions and urged users to verify all communications through official channels. “If it sounds too good to be true, it probably is,” he stated. The scams coincide with XRP’s recent price surge to $3.66, drawing increased attention from both investors and malicious actors.

Legal clarity for XRP remains a pivotal factor. A July 2023 court ruling determined XRP is not a security when sold to retail investors but classified institutional sales as securities. This split decision, upheld after both parties dismissed their appeals in August 2025, has left regulatory ambiguity unresolved. Garlinghouse noted that the legal battle, which cost Ripple over $150 million, has delayed market access in the U.S. but highlighted progress in global adoption, including partnerships with financial institutions in Japan and the UAE.

Market analysis suggests the crash may be a short-term correction rather than a trend reversal. Historical patterns show XRP has rebounded after similar drops, with support levels at $2.90 and $2.50 critical for stability. Bitpanda’s deputy CEO projected XRP could reach $5.00–$6.50 by late 2025 if regulatory clarity and ETF adoption materialize. However, liquidity risks persist, with trading concentrated on exchanges like Binance, Coinbase, and Bitget. A 200% spike in trading volume on Upbit underscores the token’s vulnerability to sudden price swings.

Garlinghouse also highlighted Ripple’s strategic expansion, including the launch of RLUSD, a stablecoin backed by BNY Mellon, and partnerships with companies like Guggenheim to enhance XRP’s utility in cross-border payments. Institutional interest has grown, with ETFs like 3iQ’s XRP product and HashKey’s tracker fund providing regulated access. Despite these developments, experts caution that ETFs could amplify volatility if inflows reverse or large holders liquidate positions.

As XRP stabilizes near $3.17, investors are advised to monitor key price levels and avoid scams. Garlinghouse reiterated that Ripple’s focus on real-world use cases, including decentralized finance (DeFi) integrations and central bank digital currency (CBDC) collaborations, positions XRP for long-term growth. However, the path forward remains contingent on regulatory outcomes, liquidity distribution, and sustained demand from both institutional and retail markets.

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