XRP News Today: XRP Plummets 20% Amid Institutional Repositioning and Market Correction

XRP, the native token of Ripple, faced significant liquidity challenges in early August 2025, as the asset fell more than 20% in a matter of weeks, trading as low as $2.75 before stabilizing near $2.82 [2]. The decline was largely attributed to institutional repositioning and a broader market correction affecting the crypto sector. Despite the magnitude of the sell-off, Ripple’s executive leadership, including CEO Brad Garlinghouse and CTO David Schwartz, remained silent throughout the downturn [1]. Analysts have highlighted that institutional actions played a central role in the liquidity crunch, with order book data showing pronounced shifts in large-volume trades [1].

The impact was not isolated to XRP alone. In late July and early August, XRP joined Bitcoin and Ethereum in a wave of over $900 million in collective liquidations, reflecting widespread uncertainty and risk aversion across the market [4]. However, XRP’s decline was more pronounced compared to other major cryptocurrencies, which remained relatively stable during the same period. The asset’s liquidity issues were further compounded by a $41.4 million market shake-up linked to declining investor confidence [8]. This has raised concerns about the token’s ability to sustain itself in a highly volatile and rapidly shifting environment.

From a financial and regulatory standpoint, the situation highlights XRP’s vulnerability to institutional sentiment and broader macroeconomic conditions. The token’s current support levels are estimated between $2.75 and $2.89, with historical price behavior influencing expectations [1]. Despite the short-term bearish trend, some technical analysts have noted potential for a 20% rebound due to bullish divergence patterns, although this remains speculative and not supported by immediate market action [1].

Complicating matters further was Coinbase’s mid-August 2025 decision to delist several cryptocurrencies, including XRP, as part of a compliance review [7]. While not directly tied to the token’s recent liquidity issues, the move added to a growing sense of regulatory uncertainty and market instability. Analysts remain divided on XRP’s future trajectory. Some AI-driven forecasts suggest that the July 2025 high of $3.65–$3.66 may represent a short-term peak, while others believe new highs could still be achieved if bullish fundamentals and market sentiment align [6]. However, the broader bearish trend suggests that XRP may struggle to regain its earlier momentum in the near term.

As the market continues to adjust, XRP’s ability to recover will depend on several key factors, including regulatory clarity, market confidence, and the overall health of the crypto ecosystem. For now, the token remains in a critical consolidation phase, with both technical and fundamental indicators pointing toward a period of uncertainty ahead [1][2][4].

Source:

[1] XRP Price Prediction: XRP Begins August With a Dip, but ... (https://bravenewcoin.com/insights/xrp-price-prediction-xrp-begins-august-with-a-dip-but-divergence-signals-a-surprise-upside)

[2] What Next For XRP as $2.75 Level Holds After Sharp ... (https://cryptoadventure.com/what-next-for-xrp-as-2-75-level-holds-after-sharp-decline-from-3/)

[4] Bitcoin, Ethereum, XRP Face $900M Liquidations (https://www.msn.com/en-us/money/markets/crypto-market-plummets-bitcoin-ethereum-xrp-face-900m-liquidations/ar-AA1JNzDk?ocid=finance-verthp-feeds)

[6] Has Ripple's XRP Already Peaked in 2025? We Asked 3 AIs (https://cryptoadventure.com/has-ripples-xrp-already-peaked-in-2025-we-asked-3-ais-answers-might-surprise-you/)

[7] XRP News Today: Coinbase to Delist Multiple ... (https://www.ainvest.com/news/xrp-news-today-coinbase-delist-multiple-cryptocurrencies-august-2025-regulatory-compliance-review-2508/)

[8] XRP's rollercoaster: What's behind the $41.4M shake-up? ... (https://www.facebook.com/FxMarketLeaders/posts/xrps-rollercoaster-whats-behind-the-414m-shake-upxrp-is-facing-decreased-confide/130****178529686/)