Why did the price of XRP fall?

XRP dropped 3.39% to $2.94 in the last 24 hours, underperforming the overall crypto market, which fell 0.98%. This decline is driven by technical breakdowns, bearish activity in derivatives, and profit-taking after recent price gains.

1. Technical Breakdown – XRP fell below the $3 support level and its 200-day moving average, signaling downward momentum.
2. Liquidation Risks – More than $500 million in long positions could be liquidated if the price falls between $2.89 and $2.73.
3. ETF Delays – The SEC postponed decisions on XRP ETFs until October, reducing institutional interest for now.
4. Market-Wide Slowdown – The Crypto Fear & Greed Index is neutral at 59, and rotation into altcoins has slowed.

Deep Dive

1. Technical Breakdown (Bearish Impact)

Overview: On October 4, XRP dropped below the important $3 support and its 200-day exponential moving average (EMA) at $2.70. This triggered many stop-loss orders, causing further selling. Currently, XRP is trading within a bearish flag pattern, which often signals continued downward pressure (Cointelegraph).

What this means:

• The 50% Fibonacci retracement level at $2.94 now acts as resistance, making it harder for XRP to rise above this price.
• The Relative Strength Index (RSI) at 57.24 suggests there is still room for the price to fall before becoming oversold.
• If XRP closes below $2.93, it could head toward $2.60–$2.70, near the 200-day EMA.

What to watch:

• A daily close above $3.05 would challenge this bearish outlook and could signal a reversal.

2. Liquidation Domino Effect (Bearish Impact)

Overview: More than $500 million worth of long positions are at risk of liquidation between $2.89 and $2.73 (Binance News).

What this means:

• Many traders use high leverage (around 20 times their investment), which can increase price swings.
• The 61.8% Fibonacci retracement level at $2.89 aligns with these liquidation points, potentially accelerating price drops.
• Spot trading volume fell 42% in 24 hours, indicating less buying support.

3. Regulatory Overhang (Mixed Impact)

Overview: The U.S. Securities and Exchange Commission (SEC) delayed decisions on spot XRP ETFs until October 18. This comes despite Ripple introducing new institutional tools like Confidential MPTs to improve the XRP Ledger (Bitcoinist).

What this means:

• Short-term uncertainty from the delay may dampen enthusiasm, even though Ripple’s technology improvements add long-term value.
• XRP’s price movement is increasingly tied to Bitcoin, with a 30-day correlation of 0.82, meaning XRP tends to follow Bitcoin’s trends closely.
• On the positive side, Ripple’s application for a banking license could help offset the impact of ETF delays.

Conclusion

XRP’s recent price drop is mainly due to technical factors, low liquidity, and regulatory delays. The $2.70 to $2.90 range is a critical support zone—if XRP bounces here, it could trap sellers, but a breakdown below this range might lead to a drop toward $2.50.

Key points to watch: The SEC’s ETF decision on October 18 and adoption of XRP Ledger’s new MPT technology. Will institutional demand pick up to balance out retail selling pressure?

What could affect the price of XRP?

XRP faces a mix of positive and negative factors, balancing strong growth potential with regulatory and technical challenges.

1. Growing Institutional Use (Positive) – New token standards and banking partnerships could increase XRP’s real-world usefulness.
2. ETF Approval Decisions (Uncertain) – The SEC’s October rulings might bring in billions or delay XRP’s momentum.
3. Technical Risks (Negative) – If XRP falls below $3, it could drop about 15% to $2.60.

In-Depth Look

1. XRP Ledger’s Push with Institutions (Positive)

Ripple recently introduced the Multi-Purpose Token (MPT) standard on the XRP Ledger (XRPL). This new feature allows for the secure and compliant tokenization of real-world assets, like stocks or bonds, with built-in identity checks (KYC/AML). Big financial firms such as Franklin Templeton and BBVA are already experimenting with XRPL for transactions and asset custody.

Why it matters:
Every time an MPT transaction happens, a small amount of XRP is burned as a fee, which reduces the total supply and can increase value over time. Experts estimate that tokenizing real-world assets on XRPL could add up to $1.2 trillion in value by 2026 (Uphold Research).

2. ETF Approval Deadlines (Uncertain)

The U.S. Securities and Exchange Commission (SEC) must decide on 21 applications for XRP-based Exchange-Traded Funds (ETFs) by October 18, 2025. Current market predictions show a 93% chance of approval. However, ongoing regulatory uncertainty could push decisions into 2026.

Why it matters:
If approved, XRP ETFs could attract billions of dollars in investment, similar to the Bitcoin ETF market, which is expected to bring in up to $8.4 billion. On the other hand, a rejection might cause a sharp price drop, similar to Ethereum’s 18% decline after a delayed ETF decision in 2023 (Coingape).

3. Technical Analysis and Risks (Negative)

XRP recently fell below its 200-day exponential moving average (EMA) at $2.95 and key support levels around $3.07. Data from CoinGlass shows that there are liquidation orders totaling $500 million just below $2.89.

Why it matters:
If XRP stays below $3, it could confirm a bearish pattern, potentially pushing the price down to $2.60. However, if XRP climbs back above $3.18, this negative outlook could be canceled, possibly leading to a rebound toward $3.40 (Cointelegraph).

Conclusion

XRP’s future price depends heavily on how well it gains traction with institutions, the SEC’s ETF decisions in October, and whether it can hold the $3 support level. Investors should watch these developments closely. Additionally, with whales holding 47 billion XRP, their actions could either stabilize the market or increase price swings.

What are people saying about XRP?

XRP conversations swing between hopes for a breakout and concerns about big investors selling. Here’s what’s trending now:

1. Big investors in a tug-of-war – $553 million moved off exchanges, but selling pressure may be coming
2. ETF rumors heating up – Nasdaq futures launch sparks bets on prices rising above $3
3. Institutional interest grows – Ripple’s new token standard aims at Wall Street adoption
4. Technical warning signs – Bearish signals could lead to a 15% price drop

In-Depth Look

1. @RipBullWinkle: Whale Activity Intensifies 🐋 Mixed Signals

"340 million XRP bought at $2.77 – this could be either accumulation before a price jump or whales preparing to sell."
– @RipBullWinkle (210K followers · 1.2M impressions · 2025-09-02 20:25 UTC)
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What this means: The situation is unclear. Large purchases show confidence, but similar moves happened before a 20% price drop in July. Watch the $2.90 to $3.10 price range closely for signs of a breakout or breakdown.

2. @VirtualBacon0x: ETF Launch Countdown 📈 Optimistic

"My buy zone? $1.80 if Bitcoin rallies or XRP stalls. SEC clarity plus CME futures could trigger ETF approvals by 2026."
– @VirtualBacon0x (89K followers · 680K impressions · 2025-05-24 21:18 UTC)
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What this means: Positive long-term outlook. Regulated ETFs could bring in over $10 billion, but short-term moves depend on the SEC’s decision expected around October 18.

3. @cookiedotfun: Nasdaq Futures Launch Boosts Sentiment 🚀 Bullish

"XRP Futures ETF launches – first hourly volume hits $1.5 million. This signals strong institutional interest."
– @cookiedotfun (62K followers · 950K impressions · 2025-05-23 12:27 UTC)
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What this means: This is a positive development. CME’s XRP futures now represent 14% of spot trading volume, creating opportunities that usually help stabilize prices.

4. @EnigmaTrader: Selling Pressure Returns 📉 Bearish

"640 million XRP moved to exchanges in August – similar to January’s peak. Next support level is $2.65, about 12% below current price."
– @EnigmaTrader (Source: CryptoQuant · 2025-08-07 07:39 UTC)
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What this means: Short-term outlook is negative. Whale selling increased, matching patterns before a 40% crash earlier this year. If daily closes fall below $2.95, it would confirm the bearish trend.

Conclusion

The general view on XRP is cautiously optimistic. Institutional moves like ETFs and Ripple’s new token standard are positive, but technical risks like bearish signals and big investor selling remain. The XRP Ledger’s new compliance features could unlock over $10 trillion in tokenized assets over time. The key price level to watch in October is $3.10 — a strong close above this would challenge the bearish outlook. Keep an eye on the SEC’s ETF announcements and the XRP/BTC ratio for clues about shifts in the altcoin market.

What is the latest news about XRP?

XRP is balancing growing interest from institutions with some warning signs from technical analysis as important ETF deadlines approach. Here’s a quick update:

1. XRPL Rolls Out Institutional Tools (October 4, 2025) – New Multi-Purpose Tokens launch, aimed at regulated asset issuance.
2. $3 Price Support Under Threat (October 4, 2025) – Technical indicators suggest a possible 15% drop if the price falls below $2.93.
3. SEC ETF Decisions Coming Soon (October 18-19, 2025) – Final rulings expected on Grayscale and 21Shares XRP ETF applications.

In-Depth Look

1. XRPL Rolls Out Institutional Tools (October 4, 2025)

What’s Happening:
Jazzi Cooper, Product Director at RippleX, shared the XRP Ledger’s plan to support institutions with new features:

• Multi-Purpose Tokens (MPT): These are special tokens built into the protocol that include built-in identity checks (KYC/AML), the ability to freeze assets if needed, and support for extra information like bond details.
• Permissioned Decentralized Exchange (DEX): A regulated marketplace for trading real-world assets that meets compliance standards.
• Native Lending Protocol: A system for on-chain lending and borrowing, launching with the upcoming XRPL v3.0.0 update.

Why It Matters:
These tools make XRP more useful for institutions by lowering compliance costs and encouraging more transactions that use XRP for fees. However, it’s still unclear when these features will be widely adopted. (U.Today)

2. $3 Price Support Under Threat (October 4, 2025)

What’s Happening:
XRP’s price dropped below its 200-period 4-hour exponential moving average (EMA) at $3, triggering bearish signals:

• A rounded top and bearish flag pattern on the 4-hour chart, similar to a 15% drop seen in September.
• Large clusters of liquidity suggest that about $500 million in long positions could be forced to sell if the price falls below $2.89.

Why It Matters:
This points to a neutral to bearish outlook in the short term. If XRP closes below $2.93, it could fall further toward $2.60, which is the 200-day EMA. To turn things around, buyers need to push the price back above $3.20 to break this negative pattern. (Cointelegraph)

3. SEC ETF Decisions Coming Soon (October 18-19, 2025)

What’s Happening:
The U.S. Securities and Exchange Commission (SEC) will make final decisions on two major XRP ETF applications:

• Grayscale XRP Trust (October 18)
• 21Shares Core XRP Trust (October 19)

Analysts from Bloomberg estimate there’s a 75-95% chance these ETFs will be approved, thanks to clearer regulations following Ripple’s recent legal victories.

Why It Matters:
Approval would be a big positive for XRP, potentially bringing in more institutional investment. However, any delays or rejections could cause price swings. Recent updates to the ETF filings show the issuers are working to meet SEC requirements. (Bitcoinist.com)

Conclusion

XRP’s future depends on how quickly institutions adopt the new XRPL features and whether the SEC approves the upcoming ETFs. While technical analysis warns of possible short-term price drops, the SEC’s October decisions could open the door to increased institutional demand or extend the current period of price consolidation.

What is expected in the development of XRP?

XRP’s roadmap is focused on growing its use by institutions, improving connections with other blockchains, and integrating real-world assets. Here are the key upcoming milestones:

1. RLUSD Stablecoin Launch (Q4 2025) – Ripple will introduce a USD-backed stablecoin designed for decentralized finance (DeFi) and cross-border payments.
2. EVM Sidechain Integration (Q4 2025) – A new bridge powered by Axelar will connect XRP Ledger with Ethereum and Cosmos networks.
3. XRPL Japan & Korea Fund (2025) – Ripple is dedicating 1 billion XRP to support growth and partnerships in the Asia-Pacific region.
4. XRP ETF Decisions (October 18–25, 2025) – The U.S. Securities and Exchange Commission (SEC) will decide on several XRP exchange-traded funds (ETFs), including Grayscale and 21Shares.

Deep Dive

1. RLUSD Stablecoin Launch (Q4 2025)

What it is: Ripple USD (RLUSD) will be a fully regulated stablecoin backed by U.S. government bonds and bank deposits. It will be available on both Ethereum and the XRP Ledger (XRPL). The goal is to increase liquidity on decentralized exchanges and encourage institutional use of DeFi, with XRP serving as a bridge currency.
Why it matters: This could increase XRP’s usefulness and trading volume, helping XRPL become a key player in compliant financial services. However, stablecoins face regulatory challenges that could impact this plan.

2. EVM Sidechain Integration (Q4 2025)

What it is: Ripple is building an Ethereum Virtual Machine (EVM)-compatible sidechain with Axelar, allowing developers from Ethereum and Cosmos to build on XRPL. This sidechain will connect over 55 blockchain networks, improving interoperability. More details can be found in the XRP Ledger Apex 2024 report.
Why it matters: This expands the developer community and potential use cases for XRPL. Success depends on smooth integration and approval from the XRPL community.

3. XRPL Japan & Korea Fund (2025)

What it is: Ripple has set aside 1 billion XRP to support hackathons, partnerships, and grants in Japan and Korea. Early projects benefiting include VWBL Protocol and Moia Finance.
Why it matters: This fund aims to boost adoption in key Asian markets. However, progress could be slowed by local regulations.

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

What it is: The SEC will make decisions on several spot XRP ETFs, including those from Grayscale (decision on October 18) and Franklin Templeton (October 25). Market estimates put the approval chance at 93% (Polymarket).
Why it matters: Approval would likely bring significant institutional investment into XRP, driving demand and price. Rejection could cause short-term market volatility.

Conclusion

XRP’s roadmap combines important technical developments like RLUSD and the EVM sidechain with strategic moves to grow adoption in Asia and through ETFs. The success of these plans depends heavily on clear regulatory guidance and developer support. The upcoming SEC ETF decisions in October could be a major turning point, potentially unlocking new liquidity or causing delays that test investor confidence. Keep an eye on SEC announcements and XRPL’s total value locked (TVL) for signs of progress.

What updates are there in the XRP code base?

Recent updates to the XRP Ledger focus on enhancing security, improving scalability, and encouraging adoption by businesses.

1. Dynamic NFT Support (August 30, 2025) – Introduced NFTs that can change over time and enabled tokenization of real-world assets (RWAs).
2. Firewall Security Upgrade (September 13, 2025) – Added customizable transaction controls to help block scams.
3. Validator Software Rollback (September 10, 2025) – Reverted to a stable version after issues were found in the latest update.

Deep Dive

1. Dynamic NFT Support (August 30, 2025)

What it is: This update allows NFTs (non-fungible tokens) on the XRP Ledger to store data that can be updated after they are created. For example, NFTs can now track ownership history or represent fractional ownership in real estate.
The DynamicNFT feature, activated on June 11, 2025, supports tokenizing real-world assets like Guggenheim’s digital commercial paper and Ondo’s treasury funds. The market value of these tokenized assets on the XRP Ledger reached $131.6 million in the second quarter of 2025.
Why it matters: This is a positive development for XRP because it opens up new opportunities for institutional investors to use decentralized finance (DeFi) on the XRP Ledger. It helps attract more capital to the platform’s growing tokenization ecosystem. (Source)

2. XLS-86 Firewall (September 13, 2025)

What it is: This update introduces customizable rules that let users control how and when transactions can happen. For example, users can set limits on transaction amounts or times, and create a list of trusted addresses. If a wallet is compromised, a 24-hour delay on withdrawals gives the owner time to respond.
This feature was created in response to an increase in scams targeting XRP holders, especially those using AI-driven tactics.
Why it matters: This update improves security, which is good for institutional users, but it may add some complexity for everyday users. Overall, it helps build trust in the XRP Ledger’s ability to meet regulatory and compliance standards. (Source)

3. Validator Software Rollback (September 10, 2025)

What it is: Due to memory leaks and software conflicts in version 2.6.0, the XRP Ledger validators rolled back to a stable version 2.5.1 to keep the network running smoothly.
While this rollback fixed critical issues affecting transaction consensus, it delayed new features like PermissionDelegation. Validators need to upgrade to the stable version to avoid service interruptions.
Why it matters: In the short term, this is a setback because it shows some instability in the software. However, it’s neutral in the long run since the core problems were quickly addressed. (Source)

Conclusion

The XRP Ledger’s recent updates highlight a focus on enterprise-ready features like Dynamic NFTs and real-world asset tokenization, while also tackling important security and stability challenges. This shift toward regulated DeFi and asset tokenization could attract more institutional interest over time. One key question remains: how will the delay of the PermissionDelegation feature affect developer activity after the rollback?