XRP News Today: XRP Plunges 16% as Profit-Taking and Volatility Weigh on Crypto Market

XRP’s price plunged over 16% in a single day in late July 2025, marking its steepest decline since April 2025. The token, which had surged 92% in 30 days to reach $3.66 from $1.95, faced a sharp correction as market participants took profits and liquidations intensified. By the time of reporting, XRP stabilized near $3.07, with no major negative catalysts—such as lawsuits, regulatory rejections, or ecosystem failures—driving the sell-off [1]. Instead, the drop was attributed to a natural cooldown after a rapid rally and broader crypto market volatility, which saw total capitalization contract by 1.4% to $3.88 trillion [1].

Community members and analysts emphasized that steep corrections are common in crypto markets, particularly during bull cycles. One XRP holder noted that the 16% pullback was “healthy” and in line with typical market behavior, with $10–$15 still seen as a potential price range [1]. Vincent Van Code, a crypto voice, advised against panic selling in the absence of material news, arguing that the drop lacked a clear justification beyond profit-taking [1]. These perspectives reflect a broader sentiment that short-term turbulence does not necessarily signal a long-term bearish trend.

Technical analysis highlighted vulnerabilities in XRP’s price structure. The token breached key support levels, with a “cup-and-handle” pattern identified by analysts as a bearish continuation signal [4]. CoinGlass data revealed that XRP’s liquidations ranked second only to Ethereum during the selloff, amplifying downward pressure on leveraged positions [9]. A 18.8% drop raised concerns about defending the $3.00 threshold, a critical psychological level for regaining investor confidence [10]. Meanwhile, macroeconomic factors exacerbated the decline. U.S. President Donald Trump’s comments on escalating tariffs spooked risk-sensitive assets, including cryptocurrencies, while delays in the SEC’s approval of a crypto ETF index fund dampened institutional demand for altcoins [1].

Long-term forecasts remain mixed. A bullish outlook from AOL.com projected XRP reaching $5 within two years, citing its recent momentum near $3.60 [8]. However, this contrasts with technical indicators and macroeconomic headwinds, including geopolitical uncertainty and regulatory delays. Mitrade analysts warned of a potential 12% correction in August, citing a “double top” formation as a bearish sign [2]. Traders are advised to monitor Bitcoin’s dominance, geopolitical developments, and regulatory clarity, which will likely shape XRP’s trajectory.

Historical patterns offer cautious optimism. XRP rebounded from a 10.39% drop in April 2025 amid U.S. tariff-related jitters, suggesting the token may stabilize if broader market conditions improve [5]. Nonetheless, immediate risks persist, with over $93 million in long positions wiped out during the selloff [9]. Analysts stress that while corrections are routine in crypto, investors should remain cautious about leveraged positions and macroeconomic volatility.

The Altcoin Season Index, which gauges altcoin strength relative to Bitcoin, remained at 43 out of 100, underscoring weak altcoin sentiment [1]. XRP’s performance, however, is closely tied to broader market trends and institutional sentiment. As the crypto market digests recent developments, the focus will shift to whether XRP can reclaim key support levels and whether regulatory clarity in the U.S. can reignite demand for altcoins.

Sources: [1] [Why XRP Price is Down Today?](https://coinpedia.org/news/why-xrp-price-is-down-today/) [2] [XRP Price Forms Double Top, This Structure Says A Crash](https://www.mitrade.com/insights/news/live-news/article-3-984216-20250724) [4] [XLM and XRP Price Analysis: Why Ripple, Stellar Crypto...](https://www.banklesstimes.com/articles/2025/07/23/xlm-and-xrp-price-analyis-why-ripple-stellar-crypto-are-crashing/) [5] [Why XRP (Ripple) Is Sinking Today](https://www.msn.com/en-us/money/other/why-xrp-ripple-is-sinking-today/ar-AA1J9tUk) [8] [Prediction: XRP (Ripple) Will Be Worth $5 Within 2 Years](https://www.aol.com/prediction-xrp-ripple-worth-5-080000098.html) [9] [Ripple's XRP Crashes Double Digits - $90M in Long...](https://cryptopotato.com/ripples-xrp-crashes-double-digits-90m-in-long-positions-wiped-out/) [10] [XRP Logs Worst Daily Drop Since April. Is $3 in Danger?](https://u.today/xrp-logs-worst-daily-drop-since-april-is-3-in-danger)