XRP News Today: XRP Drops Over 6% as Rate Hurdles and Legal Uncertainty Weigh on Market

XRP experienced a notable decline in late July 2025, dropping more than 6% amid a broader downturn in the cryptocurrency market. The decline was driven by a convergence of macroeconomic, regulatory, and internal market dynamics. CoinMarketCap data highlights that the token’s performance was significantly impacted by the U.S. Federal Reserve’s decision to maintain current interest rates, despite growing economic pressures [2]. This decision dampened risk appetite and prompted investors to shift capital away from speculative assets like XRP toward safer financial instruments [2].

Compounding this was the U.S. government’s imposition of a 35% tariff on Canadian imports and a 10% global tariff, which raised concerns about inflationary pressures and potential disruptions in global trade. These developments intensified the bearish sentiment in the market, particularly among investors with exposure to cryptocurrencies [2].

Within the crypto market, large-scale liquidations of leveraged positions further exacerbated the downward momentum. As macroeconomic volatility forced overleveraged traders to close positions, XRP—being a highly liquid and widely traded asset—faced heightened selling pressure. On-chain data also revealed that a large portion of XRP holders were in profit, increasing the likelihood of selling during periods of uncertainty [2].

Cointelegraph reported that over 93% of XRP's circulating supply was in profit, triggering a wave of profit-taking that worsened the sell-off [3]. Whale activity and large holders offloading their positions added to the downward pressure on the token. At the same time, uncertainty surrounding the potential approval of an XRP spot ETF continued to weigh on investor sentiment. While regulatory progress was anticipated, delays and unclear signals from regulators restrained enthusiasm and deepened the cautious outlook [2].

Further complicating matters was the ongoing legal battle between Ripple and the U.S. Securities and Exchange Commission (SEC), which remained unresolved. The SEC’s delay in its appeal vote in the case created a cloud of legal uncertainty, shaking investor confidence and souring market sentiment [6]. While a favorable legal outcome remains a potential catalyst for XRP, the absence of resolution continues to hinder broader adoption and institutional interest [6].

Technical indicators also suggest continued downward pressure. The current price action points to a possible break below the key $3 support level. Falling demand and declining futures volume indicate that XRP could face further downside risk in the near term [9]. Unless there is a reversal in macroeconomic policy or a regulatory breakthrough, XRP may continue to struggle against these headwinds [2].

Source:

[1] https://m.economictimes.com/news/international/us/crypto-darling-xrp-under-pressure-price-dips-below-3-whats-causing-the-drop-is-a-massive-selloff-coming/articleshow/123042471.cms

[2] https://timestabloid.com/major-reasons-why-xrp-is-down-today/

[3] https://cointelegraph.com/news/3-price-at-risk-why-xrp-was-one-of-the-worst-peformers-this-week

[6] https://www.fxempire.com/forecasts/article/xrp-news-today-legal-clouds-etf-bets-stir-volatility-in-xrp-price-forecast-btc-below-115k-1537951

[9] https://beincrypto.com/xrp-price-holds-steady-but-activity-falls/