XRP News Today: XRP drops 19% amid 3% crypto market slide analysts call it healthy correction

XRP, the digital asset issued by Ripple, experienced a 19% decline from its multiyear high of $3.66 to an intra-day low of $2.95 on July 23, 2025, according to data from CoinGlass [1]. The drop, which occurred alongside a broader 3% slide in the $3.79 trillion crypto market, triggered $113.62 million in liquidations for XRP leveraged positions, with $106.8 million attributed to long positions. Analysts, however, characterized the correction as a “healthy pullback” and emphasized that bullish momentum remains intact [1].

The decline followed a period of aggressive buying that pushed XRP’s price up 92% in 30 days, reaching $3.66. Technical indicators, including the relative strength index (RSI), highlighted overbought conditions prior to the correction. The RSI for XRP fell from 71 to 61 on the weekly chart and from 88 to 56 on the daily chart, signaling a return to neutral territory. Analysts noted that the $3 level, coinciding with the 100-period simple moving average (SMA), now acts as critical support. A breakdown below this level could see XRP retest the 200-period SMA at $2.60 [1].

Market participants attributed the sharp selloff to cascading liquidations and thin liquidity, which amplified volatility. Over-leveraged long positions were particularly vulnerable, with XRP’s liquidations totaling $113.62 million in 24 hours. Despite the abrupt drop, experts argued that large liquidation volumes often signal a market bottom. Pseudonymous analyst CryptoData observed that while the $1 billion liquidation threshold—a historical indicator of market troughs—was not reached, recent volatility could compensate for it [1].

The correction has not dampened long-term optimism. Analysts like Egrag Crypto emphasized that buyers reentered the market aggressively after the selloff, describing the dip as an opportunity to accumulate at discounted prices. XRPunkie, another market observer, called the pullback a “normal part of crypto market movements” and reiterated a $10–$15 price target for XRP. “Let it bottom out, and we should be on our way to much higher prices real soon,” they said on social media [1].

Broader market resilience also provided context. The overall crypto market saw $968 million in liquidations, with Ethereum (ETH) accounting for the largest share at $195 million. However, XRP’s correction was deemed more controlled compared to other assets. Bitpanda deputy CEO Lukas Enzersdorfer-Konrad noted that strong liquidity and growing confidence in altcoins suggest XRP is “on track to regroup.” Analysts also highlighted rare bullish chart patterns, such as inverse head-and-shoulders and ascending triangles, as potential precursors to a rally [1].

The event underscores the cyclical nature of crypto markets, where sharp corrections often precede renewed uptrends. While the immediate focus remains on stabilizing prices at key support levels, long-term fundamentals—such as XRP’s role in cross-border payments—continue to attract institutional interest. For now, the market appears to be digesting the recent gains, with analysts advising traders to maintain strict risk management strategies and avoid overexposure during volatile periods [1].

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