XRP News Today: XRP Drops 8% Amid Bitcoin Liquidity Crunch

XRP, the cryptocurrency associated with Ripple, has been under significant pressure recently, largely due to a liquidity crunch in the Bitcoin market. The price of XRP slid slightly to $2.42 after peaking at $2.65. This downward trend comes after a period where XRP had been supported around the $2.12 mark, mirroring a bullish sentiment that has since waned.

Bitcoin's price has stabilized around $103,000 after facing multiple rejections at the key $105,000 resistance level. This stabilization has been driven by global trade deals, strong corporate accumulation, and spot ETF inflows. However, the market remains cautious as the defunct exchange FTX announces its second round of repayments to creditors, which could inject volatility into the crypto market.

The global trade developments and cooling inflation data from the US have buoyed markets this week. Major trade deals have eased global trade tensions. These developments have boosted investors' confidence and risk-on sentiment for risk assets like Bitcoin. However, despite these positive macroeconomic indicators, Bitcoin has remained range-bound, consolidating between $100,700 and $105,000.

Corporate and institutional demand for Bitcoin has continued to bolster its strategic appeal. Japanese investment firm Metaplanet announced the addition of 1,241 BTC valued at $125.3 million to its holdings. Additionally, Ukraine is working on legislation to establish a national strategic Bitcoin reserve, and DDC Enterprise Ltd has announced plans to adopt Bitcoin as a strategic reserve asset. These developments signal a long-term commitment to Bitcoin’s role in treasury management and could strengthen regulatory clarity and investor confidence.

Despite the bullish outlook, there are bearish signs to watch for. The Network Realized Profit/Loss (NPL) metric shows that BTC holders are booking some profits after a massive gain of over 10% in the previous week. This trend could increase selling pressure and lead to a sharp price fall if it continues. Additionally, the upcoming creditor settlements by FTX could trigger a wave of selling off in the crypto market.

Bitcoin's technical outlook suggests fading bullish momentum. The Relative Strength Index (RSI) on the daily chart reads 69 and points downwards after slipping below its overbought level of 70, giving a sell signal. The Moving Average Convergence Divergence (MACD) indicator is also flipping to a bearish crossover on the daily chart. If these indicators confirm a sell signal, it could extend the decline to retest the psychological support level at $100,000.

High-cap altcoins are stuck in chop city, trading well below their weekly highs as Bitcoin’s liquidity crunch keeps the market on edge. Roughly $29 million in longs got wiped in the past 24 hours alone — classic leverage puke. Zoom into the 4-hour chart, and the story’s the same: Bull-side exposure is getting steamrolled. Bitcoin’s rally is stalling near the critical $105,000 resistance. Momentum is fading, technicals are running hot, and holders are locking in profits — all classic signs of an overheated setup. Shorts are clearly stepping in to fade the euphoria.

XRP isn’t escaping the heat either. Short-sellers are in the driver’s seat, dominating order flow and ambushing bullish entries. Long liquidations have surged to $16.2 million, accounting for nearly 80% of total XRP wipeouts. Unless Bitcoin flips $105k with conviction, expect liquidity squeezes to persist — and that makes XRP’s path beyond $2.60 a tough climb in the short term.

Recently, XRP briefly flipped Tether [USDT] in market cap, claiming the third spot among crypto heavyweights. While short-lived, it delivered a strong psychological jolt to XRP bulls. As BTC grinding toward a local top, the rotation narrative is heating up. Right on cue, XRP/ETH tagged a structural support zone, and with ETH looking overextended, the reversal play lit up. Result? XRP’s market cap blasted past $150 billion, riding a momentum burst straight out of the rotation playbook. The psychological impact? Tangible. Binance reserves for XRP slid from 2.906 billion to 2.89 billion – signaling active offloading into cold wallets or strategic accumulation.

Overall, BTC’s sideways chop is priming the pump for altcoin inflows, but the real fireworks will light up when BTC shatters the $105k resistance. That’s when short squeezes will rip through, and XRP is perfectly positioned to capitalize on that liquidity squeeze. With robust on-chain demand building a solid foundation, hitting $3 XRP isn’t just a pipe dream. It’s a build-up waiting for a Bitcoin-fueled breakout.

Given the current market conditions, the question remains whether XRP will be able to reach the $3 mark. According to the analyst's forecast, Bollinger Bands suggest that XRP could potentially reach $3, but it must first pass a major stress test. XRP has just broken key 6-month support against Bitcoin, which could indicate further downward pressure. The future of XRP will depend on how it navigates the current liquidity crunch and market volatility.