XRP News Today: XRP crashes below $3 as 470M token dump fuels crypto sell-off

XRP’s price has plummeted below $3 in recent trading sessions, marking a significant correction amid broader market turbulence and structural selling pressures. The decline, which accelerated in early August, has been driven by a confluence of macroeconomic headwinds, liquidity constraints, and large-scale sell-offs by institutional and whale holders. As of the latest data, XRP trades at $2.88, having fallen below its key $3 support level for the first time since mid-August [4].

The sharp drop followed a massive dump of 470 million XRP tokens over ten days, triggering a rapid decline in the asset’s value. Analysts suggest this dumping may have been fueled by profit-taking from long-term holders who had entered the market during XRP’s earlier rally [3]. This exodus, combined with leveraged derivatives positions being liquidated, amplified the downward trend across the broader cryptocurrency market [4].

Technical analysis also highlights bearish indicators. A critical resistance line between $3.15 and $3.20 has repeatedly failed to hold, signaling continued downward momentum. Some analysts have noted a recent bounce at $2.96 as a potential sign of the market “hunting for a bottom,” suggesting possible short-term stabilization, though long-term uncertainty persists [9].

The broader crypto market has mirrored XRP’s performance, with nearly all top 10 cryptocurrencies experiencing significant losses. This synchronized sell-off reflects systemic risk factors, including macroeconomic pressures and regulatory uncertainty. In particular, the delayed decision by the U.S. Securities and Exchange Commission (SEC) on ETF applications has added to market unease, further discouraging investor confidence [5].

Despite the bearish trend, some participants remain cautiously optimistic. A clear move above $2.920 could potentially push the price back toward $3.00, but such a reversal would require a meaningful shift in market conditions [2]. For now, the focus is on whether XRP can hold above $2.90 to avoid further losses.

The overall market environment remains fragile, with elevated leveraged positions and weak liquidity exacerbating price swings. On-chain data indicates increased whale activity, with large holders moving tokens to exchanges, further intensifying the downward pressure [3]. Derivatives markets have also played a role, as heavy long positions faced rapid liquidation once key support levels were breached [4].

Looking ahead, traders are monitoring several key indicators. A decline in derivatives funding rates, renewed stablecoin net issuance, and increased spot inflows could signal stabilization. Conversely, a rise in funding rates after a short-term bounce would indicate that leveraged exposure remains high [4].

In summary, the drop below $3 was not the result of a single factor, but rather the culmination of macroeconomic tightening, liquidity challenges, and structural weaknesses in the derivatives market. As noted by analysts, this was a textbook cascade rather than an act of manipulation [4].

Sources:

[1] Times Tabloid – [https://timestabloid.com/heres-why-xrp-price-crashes-below-3-in-last-24-hours/](https://timestabloid.com/heres-why-xrp-price-crashes-below-3-in-last-24-hours/)

[2] Mitrade – [https://www.mitrade.com/insights/crypto-analysis/xrp/newsbtc-XRPUSD-202508201447](https://www.mitrade.com/insights/crypto-analysis/xrp/newsbtc-XRPUSD-202508201447)

[3] The Tradable – [https://thetradable.com/crypto/xrp-price-prediction-massive-470m-token-dump-sends-crypto-crashing-below-3-whats-next-0--v](https://thetradable.com/crypto/xrp-price-prediction-massive-470m-token-dump-sends-crypto-crashing-below-3-whats-next-0--v)

[4] CCN.com – [https://www.ccn.com/analysis/crypto/xrp-price-support-shattered-after-whales-exit-no-recovery/](https://www.ccn.com/analysis/crypto/xrp-price-support-shattered-after-whales-exit-no-recovery/)

[5] CoinCentral – [https://coincentral.com/xrp-price-prediction-falls-below-3-as-sec-pushes-etf-decision-back-again/](https://coincentral.com/xrp-price-prediction-falls-below-3-as-sec-pushes-etf-decision-back-again/)

[9] XT.com – [https://www.xt.com/en/blog/post/whats-next-for-xrp-after-crashing-below-3-analyst-answers](https://www.xt.com/en/blog/post/whats-next-for-xrp-after-crashing-below-3-analyst-answers)