XRP News Today: XRP drops 19% as $113M liquidations hit overbought market

XRP, the digital asset issued by Ripple, faced a significant price correction on July 24, 2025, following an eight-year high earlier in the week. The token dropped nearly 19%, falling from a peak of $3.66 to an intraday low near $2.95, triggering over $113 million in liquidations, primarily long positions, as traders grappled with margin calls amid heightened volatility [1]. This sell-off mirrored broader crypto market turbulence, with nearly $1 billion in total liquidations recorded across major assets, underscoring the systemic risks of leveraged trading during sharp corrections [1].

Technical indicators highlighted overbought conditions prior to the decline. The Relative Strength Index (RSI) for XRP retreated from 88 to around 56 on a daily basis, signaling a normalization of momentum after a rapid 92% surge over 20 days [3]. The $3 level, aligned with the 100-period simple moving average (SMA), became a critical support zone. Analysts noted that a sustained break below this level could test the 200-period SMA near $2.60, but emphasized that holding $3 would likely attract accumulation by traders seeking discounted entry points [1].

Despite the sharp decline, market observers characterized the pullback as a "healthy correction" rather than a bearish reversal. COINOTAG sources described the event as a natural part of the crypto market cycle, with strong support levels offering strategic buying opportunities [1]. XRPunkie, a prominent market commentator, reiterated that the asset’s long-term trajectory remains bullish, with price targets between $10 and $15 still attainable following the consolidation [1]. Crypto strategist Dom added a more cautious perspective, projecting a potential peak in the $7–$10 range, contingent on XRP’s dominance within the altcoin sector and broader market dynamics [1]. Bitpanda’s deputy CEO Lukas Enzersdorfer-Konrad further reinforced optimism, citing robust liquidity and investor confidence as factors that could propel XRP beyond its previous all-time highs [1].

The correction coincided with regulatory uncertainty, as the U.S. Securities and Exchange Commission (SEC) froze ETF applications involving XRP, creating additional headwinds for the asset [3]. However, analysts noted that the pullback aligns with typical patterns observed in rapidly appreciating assets, where overbought conditions necessitate a consolidation phase to sustain long-term growth [3]. The liquidation event, while disruptive, was seen as a mechanism to eliminate over-leveraged positions, potentially clearing the path for renewed buying interest.

Market participants were advised to focus on key technical levels and volume patterns as indicators of the correction’s sustainability. For long-term investors, the decline presented an opportunity to accumulate XRP at more favorable prices ahead of anticipated bullish phases. Strategic positioning and disciplined risk management were emphasized to navigate the inherent volatility of the crypto market [1].

The broader crypto landscape also experienced widespread corrections, with Solana (SOL) and Binance Coin (BNB) facing declines amid similar liquidation pressures. Bitcoin and Ethereum retreated to critical support levels, while regulatory developments such as the U.S. Digital Market Clarity Act and Europe’s MiCA framework added layers of complexity to market sentiment [6]. Analysts reiterated that XRP’s ability to maintain its $3 support level would be pivotal in determining whether it could regain upward momentum in the coming weeks.

Sources: [1] CoinOTAG, XRP Experiences Market Pullback Amid Liquidations, Analysts Suggest Potential for Short-Term Rebound (July 24, 2025), https://en.coinotag.com/xrp-experiences-market-pullback-amid-liquidations-analysts-suggest-potential-for-short-term-rebound/

[2] AInvest, XRP Dips 10% Amid Crypto Sell-Off Analysts See Healthy Pullback (July 19, 2025), https://www.ainvest.com/news/xrp-news-today-xrp-dips-10-crypto-sell-analysts-healthy-pullback-10-15-target-2507/

[3] Coinpedia, XRP Price Drops 11% Amid ETF Freeze - Can it Hold $3? (July 19, 2025), https://coinpedia.org/price-analysis/xrp-price-drops-11-amid-etf-freeze-can-it-hold-3/

[4] The, Crypto Liquidations Top $300M in 4 Hours as Bitcoin and the Crypto Market Correct (July 23, 2025), https://thecryptobasic.com/2025/07/23/crypto-liquidations-top-300m-in-4-hours-as-bitcoin-and-the-crypto-market-correct/

[5] TS2, Crypto Frenzy: Bitcoin Wavers at $120K, Altcoins Roar, Regulators Act (July 22–23, 2025), https://ts2.tech/en/crypto-frenzy-bitcoin-wavers-at-120k-altcoins-roar-regulators-act-and-nfts-rebound-july-22-23-2025/