Why did the price of XRP fall?

XRP dropped 6.34% in the last 24 hours, underperforming the overall crypto market, which fell 3.98%. Three main reasons explain this:

1. Market-wide altcoin sell-off – $1.5 billion in liquidations affected ETH, XRP, and SOL as Bitcoin’s dominance increased.
2. Technical breakdown – XRP fell below a key support level at $2.94 (the 50% Fibonacci retracement).
3. Profit-taking – After an initial price boost from SEC-approved ETF news, traders cashed out gains.

Deep Dive

1. Altcoin Liquidation Storm (Negative Impact)

A $1.5 billion sell-off happened after Ethereum (ETH) dropped below $4,000 (Bitget). This triggered forced liquidations of leveraged positions in altcoins like XRP. In just four hours, XRP saw $57.73 million in liquidations, with 68% coming from long positions (traders betting prices would rise).

At the same time, Bitcoin’s market share rose by 0.49% to 58.21%, as investors moved to what they see as safer assets. The Altcoin Season Index, which measures how altcoins are performing compared to Bitcoin, dropped 9% to 70, showing less appetite for risk.

2. Technical Support Failure (Bearish Signal)

XRP fell below several important price levels:

• $2.94: This is the 50% Fibonacci retracement, a common technical support level based on past price moves.
• $2.91: A pivot point that previously acted as support.
• 7- and 30-day Simple Moving Averages (SMAs): These now act as resistance between $2.93 and $2.95.

The MACD indicator, which helps show momentum, turned negative (-0.0154), and the RSI (Relative Strength Index) dropped to 47.59. These readings suggest XRP is neither oversold nor in a panic sell-off. Analysts highlight $2.71 as a critical support level, tested three times in September (Ali Martinez via Bitget).

3. Profit-Taking After ETF Approval (Mixed Impact)

The U.S. Securities and Exchange Commission (SEC) approved the Hashdex ETF, which holds XRP, SOL, and XLM. This news caused a quick 9% price jump on September 24. However, prices soon reversed as traders took profits. XRP’s 24-hour turnover ratio rose to 5.58%, the highest since July, showing active buying and selling.

Conclusion

XRP’s recent drop is due to a mix of technical breakdowns and a broader market pullback. While the ETF approval is a positive long-term development, short-term traders are cautious amid economic uncertainty.

Key to watch: Will XRP hold the $2.71 support level before the Federal Reserve’s meeting on September 27? If it closes below this, the next targets could be $2.50 to $2.60.

What could affect the price of XRP?

XRP’s price depends on legal clarity, institutional interest, and big investors’ actions.

1. Regulatory Outcome – The SEC lawsuit decision expected by late 2025 could open the door for more institutional buying.
2. ETF Approvals – The first U.S. XRP ETF approval shows growing access for big investors.
3. Whale Behavior – Large holders are accumulating XRP, but increased transfers to exchanges suggest possible price swings.

Deep Dive

1. Regulatory Outcome (Mixed Effects)

Overview: The SEC has been suing Ripple since 2020, with a final decision expected by late 2025. A positive ruling could confirm XRP is not a security, as hinted by a partial court win in July 2023 (source). However, some penalties related to institutional sales might still apply. The SEC’s recent approval of the Hashdex Nasdaq Crypto ETF, which includes XRP, suggests regulators are becoming more open.

What this means: Clear legal status could attract banks and investment funds. But if the lawsuit drags on or results are restrictive, adoption could slow. XRP’s 371% gain over the past year shows optimism, but a 14% drop in the last 60 days reflects ongoing uncertainty.

2. ETF Approvals & Institutional Interest (Positive Impact)

Overview: Spot XRP ETFs can bring in institutional money, similar to how Bitcoin’s price rose 20% after its ETF launch. The Hashdex ETF and other pending applications (like 21Shares and Grayscale) benefit from the SEC’s updated approval rules (source). Ripple’s partnerships with Asian banks and its efforts to get a U.S. banking license add to XRP’s real-world use cases.

What this means: ETF-driven investments could stabilize XRP’s price and reduce volatility caused by retail traders. However, competition from ETFs for other coins like Solana and DOGE, plus Ripple’s scheduled release of 38 billion XRP from escrow, might limit price gains.

3. Whale Activity (Mixed Effects)

Overview: The number of wallets holding over 1 million XRP has reached a record high (2,743 wallets), indicating strong accumulation. But recent large transfers to exchanges (averaging 260 million XRP over 30 days) resemble patterns before past sell-offs, such as the 660 million XRP moved before a 9% price drop in July (source).

What this means: Long-term holding by whales shows confidence, but increased XRP moving to exchanges raises the risk of selling pressure. The Relative Strength Index (RSI) at 48 is neutral, so whale activity could push the price up or down.

Conclusion

XRP’s future depends on positive regulatory developments balancing out volatility from large holders. A favorable SEC ruling and ETF inflows could push XRP toward $3.50–$4. On the other hand, delays in legal clarity or broader market risks might test support around $2.70. Keep an eye on the SEC update expected August 15—it could signal whether the lawsuit will be dismissed or continue through appeals.

What are people saying about XRP?

The XRP community is divided between strong holders and cautious traders. Here’s what’s trending right now:

1. $6 price targets – Some are hopeful, others skeptical
2. Whales moved $5.2 billion – Could Ripple be planning something big?
3. Bearish signals confirmed – Analysts warn of a possible 60% price drop

In-Depth Look

1. Technical Analysis Shows Mixed Signals

@cryptoWZRD_ reports:
“XRP closed slightly bearish… expect high volatility during the day.”
– @cryptoWZRD (120K followers · 1.2M impressions · Sept 5, 2025)
[View original post](https://x.com/cryptoWZRD/status/1963793267696230630)
What this means: The charts are sending mixed messages, making traders cautious. XRP’s current price around $2.76 could see sharp swings, especially since Bitcoin holds a dominant 58.17% share of the crypto market, which usually means altcoins like XRP face pressure.

2. Large XRP Transfers Spark Optimism

@Brett_Crypto_X notes:
“$5.2 billion worth of XRP moved in just a few hours! What’s Ripple up to?”
– @Brett_Crypto_X (310K followers · 4.8M impressions · Sept 3, 2025)
View original post
What this means: Big XRP wallets moved 500 million coins, suggesting major players might be repositioning. While this doesn’t guarantee a price increase, it hints at strategic moves possibly related to upcoming ETF decisions or liquidity events.

3. Bearish Patterns Suggest Possible Downside

CoinMarketCap reports:
“XRP could fall 60%, similar to the crash in 2021.”
– CoinMarketCap Analysis (July 24, 2025)
View original post
What this means: Technical indicators on the weekly chart show a bearish trend. The key support level is $2.75 — if XRP falls below this, it could trigger a wave of selling, especially since there’s $1.13 trillion in open derivatives tied to XRP.

Conclusion

The outlook for XRP is mixed. On one hand, large whale movements and hopes for an ETF provide some optimism. On the other hand, bearish technical signals and a shrinking crypto market cap (down 8.15% this week) raise concerns. Keep an eye on the $3.30 resistance level — breaking above it could turn the trend positive, while failing to do so might confirm a deeper correction.

What is the latest news about XRP?

XRP is navigating regulatory progress and price stability. Here’s the latest update:

1. SEC Approves XRP-Inclusive ETF (September 24, 2025) – The first U.S. crypto ETF including XRP signals growing institutional interest.
2. Ripple Swell 2025 Agenda Announced (September 5, 2025) – Key speakers suggest new partnerships and clearer regulations ahead.
3. XRP Tests $2.93 Support Level (September 23, 2025) – Technical indicators show some downward pressure but also signs of a possible rebound.

In-Depth Look

1. SEC Approves XRP-Inclusive ETF (September 24, 2025)

What happened: The U.S. Securities and Exchange Commission (SEC) approved Hashdex’s Nasdaq Crypto ETF, which now includes XRP alongside Bitcoin and Ethereum. This approval comes under updated rules that allow coins with active futures markets or existing ETFs to be listed more easily, skipping lengthy individual reviews.
Why it matters: This is a positive development for XRP because it opens the door for regulated institutional investors, like pension funds, to invest. It also helps legitimize XRP amid ongoing SEC scrutiny. While this could help stabilize XRP’s price, some volatility may still occur. (Bitget)

2. Ripple Swell 2025 Agenda Announced (September 5, 2025)

What happened: Ripple’s annual conference, Swell, scheduled for November, will feature speakers from major financial firms such as BlackRock, Nasdaq, and Citi. Topics will include tokenization, stablecoins, and U.S. crypto regulations. This event comes just before the SEC’s final decisions on several XRP ETF applications in October.
Why it matters: This shows Ripple’s effort to deepen ties with big financial institutions. Previous Swell events have sparked significant price increases (for example, a 200% rise in 2017). New partnerships announced here could boost investor confidence and drive XRP’s price higher. (MEXC)

3. XRP Tests $2.93 Support Level (September 23, 2025)

What happened: XRP is currently trading around $2.76, down about 7% over the past week. It faces resistance at $3.07 and support at $2.93. Technical indicators like the MACD show bearish momentum, and wallet growth is slowing. However, fewer large investors (whales) are selling, and trading volumes are rising, suggesting some accumulation.
Why it matters: The short-term outlook is neutral to bearish, but if XRP holds above $2.90, it could bounce back toward $3.40. Investors should watch for ETF-related inflows and announcements from the Swell conference to break the current price consolidation. (Bitget)

Conclusion

XRP is balancing progress on the regulatory front with some technical uncertainty. The approval of ETFs and upcoming partnerships from the Swell conference could help offset recent price pressures. The big question is whether November’s Swell event will provide the boost XRP needs to climb back above $3.50.

What is expected in the development of XRP?

XRP’s roadmap is focused on expanding its use in institutional decentralized finance (DeFi), improving connections between different blockchains, and integrating real-world assets.

1. RLUSD Expansion to Japan (Q1 2026) – Ripple’s stablecoin aims to grow adoption among institutions in Asia.
2. EVM Sidechain Activation (Pending) – A new bridge with Axelar will improve XRP Ledger’s ability to work with other blockchains.
3. XRP Spot ETF Decisions (October 18–25, 2025) – The U.S. Securities and Exchange Commission (SEC) will decide on several XRP exchange-traded fund (ETF) proposals.
4. Ripple Swell Conference (November 4–5, 2025) – Ripple’s annual event will highlight partnerships and technical updates.

Deep Dive

1. RLUSD Expansion to Japan (Q1 2026)

Overview: Ripple’s USD-backed stablecoin, RLUSD, which launched in 2024, is set to expand into Japan early next year through a partnership with SBI Holdings. This follows its initial launch in the U.S. and aligns with Ripple’s acquisition of Standard Custody & Trust Company to ensure regulatory compliance.
What this means: This is positive for XRP’s use case since wider RLUSD adoption could increase demand for XRP as a bridge currency in transactions. However, Japan’s strict crypto regulations could pose challenges.

2. EVM Sidechain Activation (Pending)

Overview: Ripple is working on an Ethereum-compatible sidechain with Axelar that will connect the XRP Ledger to over 55 other blockchains. Community approval is still pending (XRPL Apex 2024).
What this means: This development is neutral to positive. If approved, it could attract developers from Ethereum and Cosmos ecosystems, but delays in approval could slow progress.

3. XRP Spot ETF Decisions (October 18–25, 2025)

Overview: The SEC will review seven XRP ETF proposals from firms like Grayscale and Franklin Templeton during this period. Market odds suggest a 93% chance of approval according to Polymarket (@mrnguyen007).
What this means: Approval would likely boost XRP by opening the door to more institutional investment. Rejection could lead to price drops, especially given recent volatility where XRP fell about 11% in a week.

4. Ripple Swell Conference (November 4–5, 2025)

Overview: Ripple’s annual Swell event will showcase new central bank digital currency (CBDC) partnerships, RLUSD integrations, and updates to the XRP Ledger. Past conferences have led to price increases of over 30% in the following quarter.
What this means: The event could be very positive if Ripple announces new institutional partnerships. If it focuses mainly on technical updates, the market reaction may be neutral.

Conclusion

XRP’s upcoming plans combine technical improvements like the EVM sidechain and RLUSD expansion with important market events such as ETF decisions and the Swell conference. Keep an eye on the SEC’s October rulings and the Japan rollout in early 2026 for clues on XRP’s future direction. Regulatory clarity will be key in shaping XRP’s role in the growing $3 trillion market for tokenized real-world assets.

What updates are there in the XRP code base?

The XRP Ledger’s software is getting important upgrades designed for businesses.

1. Stability Patch (September 9, 2025) – Fixed major bugs in version 2.6.0 to keep the network stable.
2. AMM & NFT Fixes (August 30, 2025) – Improved security for decentralized finance (DeFi) and NFT transactions.
3. Batch Transactions (June 25, 2025) – Allowed multiple transactions to be processed together as one.

Deep Dive

1. Stability Patch (September 9, 2025)

Overview: The XRP Ledger version 2.5.1 fixed serious problems found in the earlier 2.6.0 update, focusing on making the network more reliable. Operators running nodes were advised to revert to this version to avoid issues.

This patch addressed problems with network consensus (how nodes agree on transactions) and memory leaks that could slow down or crash nodes. RippleX made sure the update works smoothly with existing setups, so users didn’t need to change anything.

What this means: This update keeps the XRP network running smoothly but doesn’t add new features. Users benefit from fewer interruptions. (Source)

2. AMM & NFT Fixes (August 30, 2025)

Overview: Three key fixes were applied to close security gaps: fixAMMv1_3, fixEnforceNFTokenTrustlineV2, and fixPayChanCancelAfter.

• fixAMMv1_3: Added protections to prevent imbalances in Automated Market Maker (AMM) pools, which help facilitate trading.
• fixEnforceNFTokenTrustlineV2: Stopped unauthorized transfers of NFTs that bypass issuer controls.
• fixPayChanCancelAfter: Fixed issues where expired payment channels could be exploited.

What this means: These improvements boost security for DeFi and NFTs on the XRP Ledger, making it more attractive to businesses and institutions looking for safe, compliant platforms. (Source)

3. Batch Transactions (June 25, 2025)

Overview: Version 2.5.0 introduced the ability to bundle up to 8 transactions—like payments or swaps—into one atomic (all-or-nothing) operation.

This reduces transaction costs and makes complex DeFi activities more efficient. It also supports cross-chain atomic swaps, allowing secure exchanges between different blockchains. Tests showed this feature doesn’t slow down the network.

What this means: This upgrade opens the door for more advanced DeFi applications on the XRP Ledger, helping it compete with platforms like Ethereum in programmable finance. (Source)

Conclusion

The XRP Ledger’s recent updates focus on improving security, regulatory compliance, and readiness for institutional DeFi use. The fixes from August and September build trust, while the June batch transaction feature expands what’s possible on the network. With Ripple aiming to grow in Asia’s real-world asset (RWA) tokenization market, these technical improvements could help drive wider adoption of XRPL.