XRP News Today: XRP Plummets 19% Amid Market Volatility as Analysts Call It Healthy Correction

XRP, the 12th-largest cryptocurrency by market capitalization, fell 19% from its eight-year high of $3.66 to an intraday low of $2.95 on July 25, 2025, according to CoinGecko and CoinGlass data [1]. The sharp correction, which erased $113.62 million in leveraged positions, including $106.8 million in long liquidations, reflected broader market volatility as the crypto sector dipped 3% to $3.79 trillion in 24 hours [1]. Analysts characterized the selloff as a “healthy pullback,” emphasizing that technical indicators and bullish fundamentals still support a potential rebound toward $10–$15 [1].

The decline followed a period of aggressive buying that pushed XRP’s price 92% higher in 30 days, reaching $3.66. The relative strength index (RSI) on weekly charts showed overbought conditions, peaking at 71 before dropping to 61, while daily RSI levels fell to 56 from 88 on July 18, signaling waning momentum [1]. Market analysts highlighted that such corrections are typical in high-growth assets. “This is a natural part of the cycle, allowing the market to consolidate gains and realign supply and demand dynamics,” one expert noted [1].

Technical analysis suggests the $3 level, coinciding with the 100-period simple moving average (SMA), could act as a key support. If bulls fail to defend it, XRP could retest the 200-period SMA at $2.60 [1]. However, some traders view the dip as an opportunity to accumulate at discounted prices. Egrag Crypto, a pseudonymous market analyst, noted, “Don’t let fear take over now! Stay strong and hold your position” [1]. XRPunkie, another analyst, labeled the pullback a “healthy correction,” predicting a short-term consolidation before a resumption of the uptrend [1].

The liquidation data underscores the role of leveraged trading in amplifying price swings. Ether (ETH) accounted for the largest losses in the broader market, with $195 million in liquidations, while XRP’s $113 million in liquidations marked the second-highest total. CryptoData, a pseudonymous analyst on X, suggested the $1 billion liquidation threshold—historically associated with market bottoms—might still be reached amid ongoing volatility [1].

Despite the short-term pain, analysts remain bullish on XRP’s long-term prospects. Bitpanda’s deputy CEO, Lukas Enzersdorfer-Konrad, cited strong liquidity and growing confidence in altcoins as factors supporting a recovery [1]. Meanwhile, analyst Dom projected XRP could reach $7–$10, depending on market dominance shifts and broader crypto trends [1].

The selloff occurred amid mixed macroeconomic signals. The U.S. Dollar Index (DXY) rose for a second consecutive week, dampening risk appetite for cryptocurrencies. However, the asset’s role in cross-border payments and institutional adoption were cited as enduring strengths. “While short-term corrections are inevitable, the fundamental drivers of XRP remain intact,” another expert added [1].

Investors will closely watch upcoming U.S. Federal Reserve meetings, with expectations of a potential rate cut on July 31 to address inflation concerns. For now, XRP remains within a $2.60–$3.66 trading range, with analysts advising patience as the market digests recent volatility [1].

Sources:

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

[2] [Bitcoin and XRP both saw sharp pullbacks today] (https://www.instagram.com/p/DMeGdCCyX7u/)

[3] [Week of July 21, 2025 - Allio | Personalized Macro] (https://www.ainvest.com/news/narrowing-500-rally-risks-concentrated-market-2507/)

[4] [The Narrowing S&P 500 Rally: Risks of a Concentrated Market] (https://www.ainvest.com/news/narrowing-500-rally-risks-concentrated-market-2507/)