XRP News Today: XRP Drops 13.65% as $100M Long Liquidations Trigger Sell-Off

XRP, the 12th-largest cryptocurrency by market capitalization, experienced a sharp 13.65% decline on July 22, 2025, following a 53.68% surge between July 9 and 21 that pushed its price to an eight-year high of $3.66. The selloff, triggered by over $100 million in long position liquidations, saw XRP briefly dip to $0.03 on some exchanges before stabilizing near $3.08, a level 0.64% above a key support zone between $3.06 and $3.10 [1]. Analysts attribute the drop to profit-taking at resistance levels and broader market volatility, with the crypto sector losing 3% of its total value in 24 hours to $3.79 trillion [1]. Despite the sharp correction, technical indicators suggest resilience, as XRP has held firm above its critical support threshold, avoiding a potential retest of the 200-period simple moving average at $2.60 [1].

The price action reflects a volatile but structured market dynamic. From July 9 to 21, XRP advanced on over 10 consecutive upward trends, fueled by institutional and retail optimism. However, the July 22 plunge erased $113.62 million in leveraged positions, with $106.8 million linked to long liquidations. This volatility aligns with broader patterns in leveraged trading, where large-scale liquidations amplify swings. Notably, XRP’s liquidation volume ranked second only to Ethereum’s $195 million, though analysts caution that the $1 billion threshold—a historical marker for market bottoms—has yet to be reached [1].

Technical analysis highlights pivotal price levels. XRP’s $3.24–$3.26 range remains a key resistance area, while the $3.06–$3.10 support zone has shown durability. A sustained recovery above $3.15 could attract institutional re-entry, according to experts like Matthew Sigel of VanEck and Glassnode analysts. Meanwhile, the relative strength index (RSI) has retreated from overbought territory, signaling waning momentum but not a breakdown in bullish fundamentals [1].

Institutional developments underscore XRP’s long-term potential. U.S.-based Nature’s Miracle launched a $20 million XRP treasury initiative, while Brazil’s VERT introduced a $130 million blockchain solution on the XRP Ledger for tokenized credit. These moves reinforce XRP’s utility in financial infrastructure, a narrative supported by analysts at Messari and CoinShares, who argue the short-term selloff stems from delayed ETF approvals rather than waning demand [1].

Regulatory clarity on a spot XRP ETF remains a critical factor. While a futures-based ETF exists, applications like REX-Osprey’s spot product await U.S. SEC decisions. Bloomberg ETF analysts estimate a 95% chance of approval by 2025, with a near-term ruling expected. Such a development could act as a catalyst for price stabilization, particularly if paired with a broader crypto market rebound and increased whale activity on-chain [1].

Market participants are also monitoring macroeconomic signals, including the U.S. Federal Reserve’s July 31 rate decision. A potential cut could ease inflationary pressures and boost risk-on sentiment, benefiting XRP’s cross-border payment use case. However, analysts emphasize that short-term fluctuations are inherent to crypto markets, with XRP’s trading range now defined by a $2.60–$3.66 band.

Key watchpoints for the coming days include the ETF decision, Bitcoin’s performance, and on-chain buying trends. If XRP holds above $3.06, a recovery toward $3.24 resistance becomes more likely. Conversely, a break below $3.00 could pressure the token toward $2.60, testing the 200-period SMA as a final support level [1].

Source: [1] [XRP price drops 19% but analysts say it’s a ‘healthy correction’] (https://coinmarketcap.com/community/articles/68820ea6cb8127406692d576/)