XRP -80.34% in 24 Hours Amid Regulatory Pressure and Market Volatility

On SEP 1 2025, XRP dropped by 80.34% within 24 hours to reach $2.8625, XRP dropped by 725.55% within 7 days, dropped by 80.34% within 1 month, and rose by 3214.63% within 1 year.

Regulatory scrutiny has intensified against XRP in the last 24 hours, leading to a sharp price correction. Recent enforcement actions by financial authorities have raised concerns over the token's legal status, triggering a wave of sell-offs across major exchanges. The move follows a series of high-profile legal rulings and enforcement actions against key XRP ecosystem participants, including banks and institutional custodians. This has led to reduced liquidity and restricted access for certain market participants, amplifying downward pressure on the asset.

Technical indicators show a breakdown in key support levels, with the 200-day moving average breached for the first time in over a year. This has historically been a bearish signal, particularly for a cryptocurrency with XRP’s market capitalization. The Relative Strength Index (RSI) has fallen below 30, suggesting oversold conditions. However, given the recent regulatory backdrop, the market may remain bearish in the near term even if short-term rebounds occur. Analysts project a possible continuation of the downward trend until a new regulatory framework is established or a major institutional buyer steps in.

Backtest Hypothesis

A potential trading strategy has been outlined to test market responsiveness to the recent price action. The hypothesis is built on the premise that XRP may continue its bearish trajectory until a regulatory or institutional catalyst emerges. The strategy uses a combination of moving averages and volume triggers to identify potential entry and exit points. Specifically, a 50-day moving average crossover is used in conjunction with a volume threshold to gauge market sentiment shifts. This backtest aims to determine whether the market will stabilize at current levels or continue to trend downward over the next 60 days.