XRP has fallen to its lowest level in six months amid a broader cryptocurrency selloff that wiped nearly $20 billion from the market in 24 hours.
According to BeInCrypto data, the token fell more than 13% to $1.53 before recovering slightly to $2.44 at press time. 2025 will be the second time that XRP falls below the $2 threshold.
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Has XRP’s bullish momentum run out?
The sudden price drop led to more than $700 million in liquidations from traders speculating on XRP’s price performance, according to Coinglass data.
In particular, more than $600 million in long positions were liquidated as traders who had bet on a price recovery were caught off guard by the sharp decline.
The decline also reduced XRP’s open interest from more than $8 billion to around $5 billion, suggesting a rapid unwinding of leveraged positions.
Nevertheless, derivatives activity soared, with XRP futures and options trading volume exceeding $23 billion, the highest level since July. This surge suggests traders are rushing to hedge their positions or take advantage of short-term volatility.
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The market downturn coincided with a resurgence of macroeconomic tensions following President Donald Trump’s announcement of 100% tariffs on Chinese goods. The move shook risk assets, including cryptocurrencies, and fueled a wave of selling pressure.
However, XRP’s decline also reflects the dynamics of the token’s internal market.
According to data from Glassnode, the bullish momentum in the token has been waning since late 2024, as investors who piled in at less than $1 took profits on the rally above $2 and $3.
In particular, two waves of profit taking in December 2024 and July 2025 coincided with peaks in the asset’s price, delivering returns of over 300% to early holders.
Now, with these gains realized and broad market sentiment turning risk-averse, XRP appears to have entered a consolidation phase.
However, market analysts say new catalysts such as the impending approval of spot ETFs could reignite investor confidence in digital assets.
Additionally, the continued growth and adoption of Ripple’s blockchain technology and the XRP Ledger could also drive the crypto token’s rise, they noted.
