XRP News Today: XRP Plummets 15% from $3.65 High as Macro Uncertainty and Fed Rate Moves Spur Sell-Off

XRP, the third-largest cryptocurrency by market capitalization, has retreated more than 15% from a record high of $3.65, signaling a broader altcoin market correction amid heightened macroeconomic uncertainty and shifting investor sentiment. The pullback, which brought the token to approximately $3.09 as of July 25, 2025, aligns with declines in assets like Solana and Dogecoin, reflecting cyclical volatility common in the crypto space. Analysts attribute the move to anticipation of U.S. Federal Reserve interest rate decisions and broader risk-off sentiment across global markets [1].

The price correction followed XRP’s surge to its highest valuation in seven years, driven by renewed investor confidence after the resolution of Ripple’s protracted legal battle with the U.S. Securities and Exchange Commission (SEC). Regulatory clarity has positioned XRP as a less-risky investment option, attracting retail investors and institutional attention. Matt Kreiser, a research analyst at Messari, highlighted that the milestone validates Ripple’s strategy to develop a regulatory-compliant blockchain infrastructure tailored for institutional adoption [1].

However, the recent rally appears to have triggered profit-taking activity, particularly from large holders. Ripple co-founder Chris Larsen was observed transferring over $140 million worth of XRP to exchanges and new wallets shortly after the price peak, a move that coincided with a 15% drop in the token’s value. This activity, coupled with a 44% decline in active addresses on the XRP Ledger, suggests reduced short-term demand amid cautious market conditions [1]. Analysts like Katie Talati from Arca noted that such extreme price swings are characteristic of crypto markets, which often react more intensely to macroeconomic signals than traditional financial assets [1].

Macroeconomic factors continue to weigh on crypto assets. Elevated leverage in altcoin derivatives markets, with open interest in futures reaching record highs, has heightened fragility. Meanwhile, delayed approval of the Bitwise crypto ETF and broader market dynamics, including Bitcoin’s stalled rally at $120,000, have contributed to a risk-averse environment. The U.S. Federal Reserve’s upcoming rate decisions remain a critical variable, as lower rates historically enhance liquidity for risk-on assets like cryptocurrencies. Political pressures, including calls from Donald Trump to reduce rates, further complicate market expectations [1].

Despite the near-term pullback, XRP’s year-to-date gains exceed 220%, reflecting strong institutional and retail demand. Analysts project potential price targets at $3.80, $4.33, and $4.72, contingent on sustained buying pressure and favorable regulatory developments. Strategic allocations by firms like Upexi and Nano Labs could normalize XRP in corporate treasuries, provided legal clarity persists. However, a successful retest of the $3.65 resistance level is seen as crucial to reigniting bullish momentum. Failure to break through could prolong consolidation or trigger a decline toward $3.40 [1].

The token’s performance remains intertwined with broader market trends. While Ethereum and Solana saw gains in recent sessions, XRP’s inability to maintain upward traction underscores the importance of macroeconomic and regulatory factors in its near-term outlook. As the crypto market navigates uncertainties, XRP’s trajectory will depend on technical validation, legal developments, and evolving risk sentiment. Investors are advised to monitor macroeconomic signals and institutional adoption trends to navigate the evolving landscape effectively [1].

Sources:

[1] [Binance - XRP’s Bull Run Stalls at $3.65: Key Moves to Revive Its Momentum!](https://www.binance.com/en/square/post/27406800802529)

[2] [AInvest - Ripple Founder 175M XRP Transfer Sparks 15% Price Drop](https://www.ainvest.com/news/xrp-news-today-ripple-founder-175m-xrp-transfer-sparks-15-price-drop-7-3m-liquidations-binance-2507/)

[3] [The - XRP Sinks 6 Percent Again as SEC Delays Bitwise Crypto ETF](https://m.economictimes.com/news/international/us/xrp-sinks-6-percent-again-as-sec-delays-bitwise-crypto-etf-is-the-dip-a-red-flag-or-a-golden-buy-signal-heres-the-2025-xrp-price-prediction-you-need-to-see/articleshow/122859722.cms)

[5] [Cryptonews - Why Is Crypto Down Today? – July 25, 2025](https://cryptonews.com/news/why-is-crypto-down-today-july-25-2025/)

[8] [The - Tesla Stock Plummets Post Earnings](https://m.economictimes.com/crypto-news-today-live-24-jul-2025/liveblog/122865756.cms)