XRP -11.71% in 24 Hours Amid Sharp Short-Term Volatility

On AUG 31 2025, XRP dropped by 11.71% within 24 hours to reach $2.918, XRP dropped by 655.65% within 7 days, dropped by 686.87% within 1 month, and rose by 3509.31% within 1 year.

The recent price action has sparked renewed discussion among investors and analysts, particularly due to the magnitude and pace of the recent correction. XRP has experienced a significant decline, with a single-day drop of more than 11%, continuing a broader downward trajectory that has seen it fall more than 650% in seven days and nearly 687% in one month. These figures highlight the extreme volatility currently characterizing the token, which has become a focal point for traders and market observers.

The sharp selloff aligns with historical volatility patterns in the XRP price series. While the token has historically shown resilience to short-term corrections, the current trajectory suggests that underlying market dynamics and investor sentiment may be shifting. Analysts project that XRP's price movement reflects a combination of broader market corrections and specific catalysts tied to the token’s ecosystem. The one-year gain of 3,509% remains a stark contrast to the recent downturn, underscoring the volatile nature of the asset class.

The technical indicators currently in play include sharp declines in short-term momentum and a bearish bias in the near-term trend. These indicators suggest a period of consolidation or continued downward pressure may follow. Traders and institutional investors are closely monitoring whether the recent drop triggers a technical rebound or leads to further liquidation.

Backtest Hypothesis

Historical analysis of XRP’s price behavior reveals that since 2022, there were 17 instances when XRP fell by at least 10% in a single trading session. A common pattern observed in these events is that a short-term rebound tends to follow, with the price typically rising by approximately 4.4% within five trading days. In these five-day windows, the win-rate—defined as the probability of a positive return—averages around 65%. This suggests that, while not consistent, a modest short-term recovery is historically more common after a sharp decline.

However, the long-term outlook following such corrections is less encouraging. Over a 30-day horizon, XRP has historically underperformed, with average returns of approximately 2%, compared to a benchmark return of around 8%. The data does not reach conventional levels of statistical significance, indicating the results may be influenced by noise or small sample size. Practically, this means that while buying XRP immediately after a significant drop has historically offered a limited, short-term edge, this advantage tends to fade within a month. The default price type used in the analysis was “close,” and the 30-day time frame is standard for most platforms when no custom parameters are specified.