XRP News Today: XRP drops 12.22% as $105M in longs liquidated after VERT tokenization fails to spark rally

XRP fell sharply by 12.22% to $3.04 on July 24, marking one of the most significant declines in the cryptocurrency market for 2025. The selloff followed the announcement by Brazilian firm VERT of a $130 million tokenization project on the XRP Ledger, which had initially raised hopes for renewed demand but failed to ignite a rally [3]. The muted investor reaction led to over $105 million in long positions being liquidated within 24 hours, making XRP the asset with the highest liquidation volume during the selloff, surpassing even Bitcoin’s $76 million in closed longs [1].

The tokenization initiative, touted as a milestone in blockchain-based real-world asset (RWA) innovation, did not translate into sustained bullish momentum. Traders who had anticipated a price surge saw their positions wiped out as demand for XRP faltered. Analysts noted that while the project highlighted institutional adoption of the XRP Ledger, it lacked the broader market catalyst needed to drive a lasting rally [4]. This divergence between technological progress and investor sentiment underscored fragility in short-term demand for the token.

Despite the decline, technical indicators suggest potential for a recovery. A golden cross formed on July 21, with the 50-day moving average crossing above the 200-day average—a pattern historically linked to prolonged price surges, such as the one observed in August 2024. Additionally, a cup-and-handle pattern on the daily chart indicates a possible reversal if XRP breaks past the $3.39 resistance level [2]. Analysts caution, however, that without sustained on-chain activity or regulatory clarity, short-term gains may remain elusive.

Broader market dynamics further complicated XRP’s outlook. Record inflows into Ethereum ETFs and declining total value locked (TVL) in DeFi protocols signaled a shift in capital toward stablecoins and other perceived safe havens [7]. Meanwhile, a $175 million transfer of XRP from Ripple co-founder’s wallets intensified market jitters, compounding downward pressure [6]. These factors, combined with the absence of follow-through buying interest after the VERT announcement, highlighted a broader caution among investors regarding XRP’s utility and regulatory risks.

The VERT tokenization project, while technically successful, exposed the gap between blockchain innovation and market dynamics. For XRP to regain traction, sustained on-chain activity and resolution of the SEC’s ongoing legal battle with Ripple are seen as critical prerequisites [8]. Until then, the asset remains vulnerable to volatility, with its technical chart offering a potential roadmap for recovery but requiring confirmation through price action above key levels.

Sources:

[1] [title: XRP Drops 14% After $175M Moved to Exchange by Ripple Co-Founder's Wallet] [url: https://www.coindesk.com/xrp-drops-14-ripple-wallet]

[2] [title: XRP Pulls Back After Technical Surge; Pattern Still Points to $6 Target] [url: https://www.coindesk.com/xrp-technical-pattern]

[3] [title: Brazilian firm VERT pioneers $130 million agribusiness tokenization on XRP Ledger] [url: https://www.coindesk.com/vert-xrp-tokenization]

[4] [title: XRP Volatility Spikes With $105M in Longs Liquidated Amid ETF Jitters] [url: https://www.coindesk.com/xrp-liquidations]

[6] [title: Ripple co-founder moves $175M in XRP in a week amid scam surge warnings] [url: https://www.coindesk.com/ripple-xrp-wallet-movement]

[7] [title: Capital shifts to stablecoins as DeFi protocols bleed TVL] [url: https://www.cryptoslate.com/stablecoins-tvl]

[8] [title: XRP Dips 12% After VERT Tokenization Fails to Ignite Rally] [url: https://www.btcc.com/en-US/square/coincentral/687667]