XRP News Today: XRP Plummets 11.2% as Market Liquidations and Geopolitical Uncertainties Deepen Losses

XRP has plummeted to $3.08, a 11.2% drop in the past 24 hours, as a combination of market-wide liquidations and geopolitical uncertainties deepened its losses. The cryptocurrency’s decline aligns with a broader selloff in the crypto market, where total capitalization fell 1.4% to $3.88 trillion. Over $634 billion in open interest for futures and options contracts was liquidated in one day, marking the 11th consecutive contraction in derivatives trading. This aggressive unwinding of leveraged positions exacerbated XRP’s downward trajectory, particularly as investor sentiment turned bearish amid heightened volatility [1].

The Altcoin Season Index, which measures altcoin performance relative to Bitcoin, stands at 43 out of 100, indicating sustained underperformance. XRP’s sharp decline reflects weak altcoin demand, with Bitcoin’s market dominance rising by 5.4 percentage points in the past month. While Bitcoin stabilized at 60.88% dominance, the shift in liquidity away from altcoins left XRP vulnerable to selling pressure [1].

U.S. President Donald Trump’s recent statements on escalating tariffs further intensified market anxiety. Announced on Truth Social, Trump’s plans to impose higher tariffs on trade barriers triggered panic across risk-sensitive assets. Despite Treasury Secretary Scott Bessent’s assurances about upcoming trade deals, including potential agreements with the European Union, XRP failed to recover. Bitcoin briefly surged to $118,000 following the news, but XRP continued to trade at a loss, underscoring its susceptibility to macroeconomic headwinds [1].

Technical breakdowns compounded XRP’s struggles. Over two trading sessions, the token fell 17%, breaking below the critical $3.00 support level and testing $2.9575. Analysts attribute this collapse to profit-taking by traders, a slowdown in altcoin interest, and Bitcoin’s rising dominance. The breakdown below $3.00 activated algorithmic selling mechanisms, with technical indicators suggesting further losses to $2.60 if the level fails to hold [1]. Elevated trading volumes during the decline pointed to institutional liquidations rather than retail panic, highlighting strategic risk management by large holders amid broader uncertainty [1].

Ethereum’s validator exit crisis added to the downward spiral. The network’s validator exit queue reached an 18-month high, with $2.34 billion in ETH awaiting unstaking. While this exodus contributed to Ethereum’s 6% decline, the simultaneous inflow of $1.2 billion in new validators indicated a mix of short-term profit-taking and long-term positioning. These dynamics reinforced a coordinated selloff across major assets, as institutional capital flowed toward Bitcoin and away from riskier altcoins [1].

Bitcoin’s relative resilience, though down 2.3%, reinforced its status as a digital safe haven during market stress. Paul Howard of Wincent noted that volatility remains low at 40, with Bitcoin consolidating between $110,000–$120,000 until September expiries. This consolidation could provide structural support for the market, but altcoins like XRP face prolonged weakness until risk appetite stabilizes [1].

Dogecoin’s 18.5% crash highlighted the fragility of speculative assets during corrections. Trading volumes exceeding 2.26 billion tokens signaled institutional unwinding of meme-coin positions, aligning with risk-off sentiment. This trend underscored a broader rotation into more established cryptocurrencies, as investors prioritized capital preservation over high-volatility plays [1].

While long-term forecasts for XRP remain bullish—Standard Chartered predicts $5.50 by 2025—the immediate path is clouded by technical and institutional challenges. Recovery hinges on reclaiming the $3.00 threshold, with further losses likely if algorithmic selling persists. The Ethereum validator exit queue and Bitcoin’s consolidation patterns remain critical variables in gauging potential turning points in the correction phase [1].

Source:

[1] [Why XRP Price is Down Today?](https://coinpedia.org/news/why-xrp-price-is-down-today/)

[2] [Why Is Crypto Going Down? XRP, Dogecoin, Ethereum...](https://coinpedia.org/news/why-is-crypto-going-down-xrp-dogecoin-ethereum/)