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Why XRP’s Price Dropped by Double Digits Today and What It Might Mean for Investors

In the last 24 hours and over the past week, Ripple’s cross-border token, called XRP, has not held up well. It has become the poorest performer among the bigger crypto assets. The price has fallen by more than 10% in a single day and recently dipped to around $1.42. This is the lowest price seen since late November 2024.

When you look at the price chart from TradingView, XRP has dropped on both short and longer timeframes. This means the price fell when you look at very small time periods (like minutes or hours) and also when you look at longer periods (like days and weeks). A month ago, XRP reached about $2.40. Since then, it has fallen about 40%. That is a big drop from its high point a short time ago.

Some of the recent moves might be connected to how some investors gain exposure to XRP through exchange-traded funds, or ETFs. An ETF is a fund that you can buy on a stock exchange. It holds a group of assets and tries to track how those assets perform. Last Thursday, investors pulled about $92.92 million from XRP ETFs in a single day. That was the largest single-day withdrawal since these ETFs started. This withdrawal could have pushed the price down because fewer people were buying XRP through the ETFs that day.

On the other side, data from SoSoValue shows a different story for ETF money. It says investors invested about $19.46 million on Tuesday and about $4.83 million on Wednesday into XRP-related ETFs. SoSoValue’s data shows both big withdrawals on one day and smaller inflows on other days. This means ETF activity alone does not explain today’s big price drop.

Yesterday, Ripple announced a significant development. It said it would provide institutional support for a platform called Hyperliquid through its prime brokerage platform. A prime brokerage is a service that helps big investors trade and settle large orders more smoothly. In simple terms, think of a prime broker as a helper that makes it easier for large traders to buy and sell lots of assets without as much trouble. This announcement is generally seen as a positive move for XRP and its use in professional trading, even though the price moved lower today.

So, what caused the big drop in XRP price? Most likely, it is not because Ripple’s technology or the XRP network has a fundamental problem. Instead, it seems to be connected to a wider mood in the crypto market. Fear, uncertainty and doubt, often shortened to FUD, is when negative or uncertain news makes investors worried and more likely to sell. When many investors start selling at once, prices can fall quickly. This kind of market mood can push prices down even if the underlying technology is not failing.

Analysts often point to something called a liquidation cascade in crypto markets. When prices fall, some traders who borrowed money to trade (using leverage) must add cash to their accounts or sell more assets to cover losses. This forced selling can cause prices to fall further, which then makes more traders panic and sell. That creates a cycle that can push prices down for a period of time. In other words, selling feeds more selling, at least for a while, even if there is no direct problem with the asset itself.

Market observers like CryptoWZRD weighed in on XRP’s daily performance. They said the asset finished the day with a bearish tone. At the time of their post, XRP was testing a price around $1.51, a level that had previously stopped declines. When the price breaks that kind of support, the next likely levels to watch are around $1.42 and $1.27. Some traders also talk about a psychological level of $1.00. A psychological level is a price that people think of as a round, memorable number. Traders often react to these levels in their decisions to buy or sell. If XRP falls toward $1.00, many investors will watch to see if the price stabilizes, or if more selling follows.

In short, today’s price move seems more connected to market mood and broad crypto conditions than to a failure in the XRP network. The Ripple team has been working to attract more institutional support, and XRP remains a part of the broader Ripple ecosystem. For everyday investors, the best approach is to watch how other market participants react and to notice the price levels that traders use to mark possible turning points.

The post Why Is Ripple’s (XRP) Price Down by Double Digits Today, and Is $1 Next? appeared first on CryptoPotato.

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