XRP recorded its sharpest decline among major cryptocurrencies, plunging more than 16% in the last 24 hours to trade around $1.29, according to CoinDesk data. The steep fall came as bitcoin dropped nearly 7%, dragging the broader crypto market lower.
Despite several recent positive developments for Ripple and the XRP ecosystem, the token failed to find support, highlighting how short-term price action is being driven more by leverage and technical momentum than fundamentals.
📉 What Triggered XRP’s Sharp Decline?
The sell-off was amplified by forced liquidations in the derivatives market.
According to data from Coinglass:
- Around $46 million worth of XRP derivatives positions were liquidated
- Nearly $43 million of those were bullish (long) positions
- The wipeout accelerated once XRP broke key technical levels
This indicates the drop wasn’t just spot investors selling — leveraged traders were aggressively forced out, adding fuel to the decline.
⚠️ Key Factors Behind the XRP Crash
🔹 1. Leverage Unwind
XRP had built up heavy long positioning in derivatives markets. Once prices slipped below support levels, stop-losses and margin calls triggered a cascade of selling.
🔹 2. Technical Breakdown
- $1.44, a major support zone, has now flipped into resistance
- Below current levels, $1.00 stands out as the next major psychological support
- There is limited historical trading activity between $1.29 and $1.00, increasing downside risk
🔹 3. Weak Market Sentiment
Broader crypto weakness, combined with declining risk appetite, pushed traders to reduce exposure, especially in high-beta altcoins like XRP.
📊 XRP vs Major Cryptocurrencies (24-Hour Performance)
| Asset | Price Change |
|---|---|
| XRP | -16% |
| Bitcoin (BTC) | -7% |
| Ethereum (ETH) | -6% (approx.) |
| Major Altcoins | -5% to -9% |
Source: CoinDesk Data
🏦 Fundamentals Improved — But Price Ignored Them
Interestingly, XRP’s plunge came despite several positive ecosystem updates:
- Flare & Hex Trust announced institutional access for FXRP minting and FLR staking
- This structure allows institutions to use XRP in DeFi without selling the token
- Ripple secured e-money licenses in Luxembourg
- Ripple also integrated Hyperliquid into its institutional prime brokerage platform, Ripple Prime
While these developments strengthen XRP’s long-term use case, they failed to lift short-term sentiment, suggesting that traders currently see little immediate impact on demand.
🧠 Why Fundamentals Aren’t Helping XRP (For Now)
XRP’s price history shows a pattern:
- Strong rallies are often driven by momentum and positioning
- Adoption and regulatory progress tend to matter only during broader uptrends
In the current environment, technical pressure and leverage cleanup are overwhelming positive news.
🔮 What’s Next for XRP?
Key Levels to Watch
- Resistance: $1.44
- Current Price: ~$1.29
- Psychological Support: $1.00
Until leverage clears and broader market sentiment stabilizes, XRP is likely to remain volatile.
In the near term, XRP is trading like a leverage unwind disguised as a fundamentals story — and neither appears finished yet.
📝 Quick Summary
- XRP plunged 16%, the worst performer among major tokens
- Heavy derivatives liquidations ($46M) intensified the sell-off
- Key support at $1.44 broke, turning into resistance
- Positive Ripple news failed to offset technical and momentum pressure
- $1.00 now looms as the next critical level
