Why did the price of XRP fall?
XRP dropped 1.15% over the last 24 hours to $2.30, extending its weekly loss to 14.34% amid a broader decline in the cryptocurrency market. Key reasons include:
- Market-wide sell-off – Concerns over trade tensions and Bitcoin’s market cycles led to selling pressure on alternative cryptocurrencies.
- Technical breakdown – XRP’s price fell below important support levels, with indicators showing bearish momentum.
- Large holder activity – Big XRP holders moved over $120 million worth of XRP to exchanges, suggesting they are taking profits.
Deep Dive
1. Market-Wide Risk Aversion (Negative Impact)
Overview:
The overall crypto market dropped 1.65% after a reversal in U.S.-China trade tariff talks failed to ease investor worries (Decrypt). The Fear & Greed Index fell to 28, signaling “Extreme Fear.” During this time, altcoins like XRP were hit harder, especially as Bitcoin’s market dominance rose to 59%.
What this means:
XRP’s price tends to move closely with Bitcoin (correlation of 0.87 over 90 days), so when Bitcoin faces selling pressure, XRP often follows. Last week, traders sold off $19 billion in crypto positions, moving funds into cash or stablecoins, according to Yahoo Finance.
2. Technical Breakdown (Bearish Momentum)
Overview:
XRP’s price fell below its 200-day moving average ($2.58) and the 50% Fibonacci retracement level ($2.33), both key support points. The Relative Strength Index (RSI) dropped to 32, nearing oversold levels, and the MACD indicator confirmed downward momentum.
What this means:
Technical traders likely sold XRP near the $2.36 resistance level. The next important support is at $2.14 (the 61.8% Fibonacci retracement). If XRP falls below this, it could trigger automated selling by trading algorithms.
What to watch:
Trading volume increased by 32% to $8.68 billion. A close above $2.45 (the 7-day moving average) could signal a short-term price recovery.
3. Large Holder Activity & Regulatory Uncertainty (Mixed Impact)
Overview:
Large XRP holders, often called “whales,” moved over 60 million XRP to exchanges like Coinbase within 24 hours (CryptoQuant). Meanwhile, Ripple’s ongoing legal case with the SEC remains unresolved, despite progress with its recent GTreasury partnership.
What this means:
The movement of XRP to exchanges suggests some holders are selling, but long-term investors might be buying at lower prices. Delays in approving XRP-based ETFs (with an 87% chance of delay according to Polymarket) add uncertainty to the market.
Conclusion
XRP’s recent price drop reflects a mix of broader market risk aversion, technical selling signals, and profit-taking by large holders. While Ripple’s partnerships, like with GTreasury, support its use in institutional finance, short-term traders remain focused on Bitcoin’s dominance and market leverage unwinding.
Key points to watch: Can XRP maintain support at $2.14? Will developments in the SEC vs. Ripple case offset delays in ETF approvals? Keep an eye on exchange inflows and adoption of Ripple’s RLUSD stablecoin.
What could affect the price of XRP?
XRP shows strong technical potential and benefits from improving regulations, but the overall market remains uncertain.
- $1 Billion Treasury Plan – Ripple’s plan to buy XRP using funds from a special investment company (SPAC) could reduce the available supply (Bloomberg).
- XRPL Upgrades – New privacy-focused tools for tokenizing assets aim to attract big financial institutions by early 2026 (RippleX).
- Regulatory Clarity – The SEC lawsuit ending removes some legal uncertainty, but market confidence remains fragile.
Deep Dive
1. Ripple’s $1 Billion XRP Buying Plan (Positive Outlook)
Overview:
Ripple plans to raise $1 billion through a SPAC to create a Digital Asset Treasury (DAT) that will buy XRP, according to Bloomberg. This follows a 2025 trend where companies use structured funds to accumulate crypto assets, though investor interest has cooled after big losses in similar funds.
What this means:
This steady buying could help balance out XRP sales from Ripple’s locked reserves (38 billion XRP still held in escrow). However, some investors remain cautious—similar funds like VivoPower’s XRP fund have dropped 63% this year, showing weak confidence in this strategy.
2. XRPL’s Tokenization Upgrades (Mixed Outlook)
Overview:
The XRP Ledger’s upcoming v3.0 upgrade will introduce confidential Multi-Purpose Tokens (MPTs) that combine privacy features with compliance tools, targeting institutional users. Over $118 million worth of real-world assets have already been tokenized on XRPL, a 2,260% increase in six months.
What this means:
If banks and institutions adopt these private, compliant tokens, demand for XRP as a settlement currency could grow. However, Ethereum currently leads with $8.3 billion in tokenized assets, and Solana’s low fees also challenge XRPL’s position. Success depends on attracting major banks like MUFG, which is testing private versions of XRPL.
3. Market Reaction After SEC Lawsuit (Neutral to Negative)
Overview:
The SEC lawsuit ended in August 2025, confirming XRP is not a security for retail investors but leaving institutional sales under review. Despite this, XRP’s price remains 32% below its July high.
What this means:
Legal clarity hasn’t sparked a price rally—trading volume dropped 23% in the 30 days after the ruling. The Fear & Greed Index is at 28 (extreme fear), and Bitcoin dominates 59% of the market, indicating that altcoins like XRP face tough market conditions despite positive news.
Conclusion
XRP’s future depends on Ripple turning technical improvements into real institutional interest while managing a cautious crypto market. The $1 billion Digital Asset Treasury could help stabilize XRP’s price around $2.33, but a strong recovery likely needs Bitcoin to rise above $110,000 to boost altcoin trading. Watch XRPL’s Q4 2025 data—growth in MPT adoption and integration of the RLUSD stablecoin will show if real-world use can overcome current market skepticism.
What are people saying about XRP?
The XRP community is currently balancing between cautious consolidation and hopeful progress. Here’s what’s trending:
- Warnings of bearish signals as XRP struggles to hold key support levels
- Speculation around ETFs driving hopes for more institutional involvement
- Large investors accumulating XRP, showing confidence despite recent price drops
Deep Dive
1. @cryptoWZRD_: Key Support Retest Looks Bearish
“XRP closed bearish at $2.80 support – scalp opportunities require holding $3.04 resistance.”
– @cryptoWZRD (12.4K followers · 38K impressions · August 30, 2025, 01:24 UTC)
[View original post](https://x.com/cryptoWZRD/status/1961600843561525351)
What this means: This is a negative sign for XRP because failing to break above $3.04 resistance repeatedly could lead to a further drop toward $2.65–$2.75, matching its recent 15% weekly decline.
2. CoinMarketCap Analysis: Bearish Weekly Divergence
“Weekly RSI divergence suggests slowing momentum – $2.75 is make-or-break.”
– Technical analysis shows a bearish divergence, meaning price highs are not supported by strong momentum indicators.
What this means: This is a neutral to negative sign for XRP. While the divergence isn’t confirmed, if XRP falls below $2.75, it could retest its April low of $1.61.
3. Yahoo Finance: ETF Buzz vs. Weak Fundamentals – Still Bullish
“XRP ETF filings surge – Brazil approved, 10+ U.S. applications pending.”
– The launch of the RLUSD stablecoin and large institutional reserves (like Webus’ $300 million) help offset weak on-chain activity.
What this means: This is a positive sign for XRP because potential ETF approvals could bring more liquidity and interest, even though transaction volume on the network dropped 37% in Q1 2025.
Conclusion
The outlook for XRP is mixed, with bearish technical signals balanced by optimistic institutional developments. Traders are watching the $2.30–$2.50 price range for clearer direction. Meanwhile, ETF decisions expected from the SEC in October 2025 and Ripple’s rollout of RLUSD could change XRP’s role in the market. Keep an eye on the $2.75 support level and upcoming regulatory news for the next big moves.
What is the latest news about XRP?
XRP is navigating a challenging market with a bold $1 billion plan to buy more coins and expand strategically. Here’s the latest update:
- $1B XRP Buying Plan (October 17, 2025) – Ripple is targeting big investors using a special investment fund.
- Japan Stablecoin Expansion (October 17, 2025) – Ripple is growing its RLUSD stablecoin with major partners in Japan.
- Market Crash Impact (October 10, 2025) – XRP dropped nearly 20% due to global tensions and forced sell-offs.
Deep Dive
1. $1B XRP Buying Plan (October 17, 2025)
Overview:
Ripple Labs is raising $1 billion through a special investment company called a SPAC to build a digital asset treasury focused on buying XRP. This plan aims to increase demand and reduce the number of XRP coins available on the market. This move follows XRP’s price drop to $2.27 during last week’s market downturn.
What this means:
This is a positive sign for XRP because steady buying could help balance out recent selling and improve market activity. However, some remain cautious since similar investment funds have struggled this year, with crypto-related stocks falling 40–70% so far (Bloomberg).
2. Japan Stablecoin Expansion (October 17, 2025)
Overview:
Ripple plans to launch its RLUSD stablecoin in Japan by early 2026 through a partnership with SBI Group. This fits with Japan’s growing interest in stablecoins tied to the Japanese yen and U.S. dollar, led by major banks like Mitsubishi UFJ, Sumitomo Mitsui, and Mizuho, which serve over 300,000 corporate clients.
What this means:
This is somewhat positive for XRP. Introducing RLUSD could strengthen Ripple’s payment network in Asia, but yen-based stablecoins are still a small market ($8 million compared to $300 billion globally). XRP already holds a strong position in Japan’s fiat trading, handling 72% of yen stablecoin volume, so there’s potential for growth if adoption picks up (Cryptonews).
3. Market Crash Impact (October 10, 2025)
Overview:
XRP’s price fell 19.5% to $2.27 during a $500 billion crypto market crash caused by U.S.-China trade tensions and $19 billion in forced sell-offs. Since then, XRP has slightly recovered to $2.31 but still trails behind Bitcoin and Ethereum, which dropped about 13%.
What this means:
This is a negative sign in the short term. XRP is still 32% below its highest price in the last 90 days and shows weak technical indicators (RSI: 39). However, Ripple’s new treasury plan may show confidence in a future recovery.
Conclusion
Ripple is focusing on attracting big investors and expanding in Japan to help stabilize XRP after a tough market drop. While there are reasons to be optimistic, doubts remain about how effective the $1 billion treasury will be, especially given ongoing global risks. Can this new investment plan help protect XRP from future geopolitical shocks?
What is expected in the development of XRP?
XRP’s development is moving forward with these key milestones:
- RLUSD Stablecoin Launch (2025) – Ripple will introduce a U.S. dollar-backed stablecoin to enhance decentralized finance (DeFi) and liquidity on the XRP Ledger (XRPL).
- EVM Sidechain via Axelar (Q4 2025) – A new upgrade will let developers from Ethereum and Cosmos build on XRPL by connecting over 55 blockchains.
- SEC XRP ETF Decisions (October 18–25, 2025) – The U.S. Securities and Exchange Commission (SEC) will decide on several XRP exchange-traded fund (ETF) applications.
- Ripple Swell Conference (November 4–5, 2025) – Ripple’s major event will likely announce new partnerships and product updates.
Deep Dive
1. RLUSD Stablecoin Launch (2025)
What it is: Ripple plans to launch RLUSD, a stablecoin backed by U.S. Treasury assets, on both the XRP Ledger and Ethereum. This stablecoin is designed to meet regulatory standards for institutions, aiming to increase liquidity on XRPL’s decentralized exchange (DEX) and use XRP as a bridge currency. Ripple also acquired Standard Custody in 2025 to support this effort.
Why it matters: This is positive news for XRP because RLUSD could attract regulated financial institutions, increase trading volume on XRPL, and strengthen XRP’s role in settling transactions across different assets. However, it will face competition from existing stablecoins like USDC.
2. EVM Sidechain via Axelar (Q4 2025)
What it is: Ripple is working with Axelar to create an Ethereum Virtual Machine (EVM)-compatible sidechain. This sidechain will connect XRPL with over 55 other blockchains, replacing the older XLS-38d bridge. It will allow developers familiar with Ethereum and Cosmos to build smart contracts on XRPL. For more details, see XRPL Apex 2024.
Why it matters: This upgrade could expand XRPL’s developer community and boost decentralized finance activity. Its success depends on approval from the XRPL community and adoption by other blockchain ecosystems.
3. SEC XRP ETF Decisions (October 18–25, 2025)
What it is: The SEC will make final decisions on several XRP ETF applications, including those from Grayscale (October 18), 21Shares (October 19), and WisdomTree (October 25). According to Polymarket, the chances of approval are about 93% (source: @0xPhantomDefi).
Why it matters: Approval would be a strong positive for XRP, opening the door for more institutional investment and confirming XRP’s regulatory standing. If rejected, it could lead to renewed selling pressure, especially since XRP’s price has dropped 18% in the past week.
4. Ripple Swell Conference (November 4–5, 2025)
What it is: Ripple’s annual Swell conference in Singapore will highlight partnerships related to central bank digital currencies (CBDCs), the expansion of RLUSD into Japan through SBI Holdings, and updates on Ripple’s application for a Fed Master Account to access the Fedwire payment system directly.
Why it matters: If Ripple announces new banking partnerships or regulatory progress, it could boost XRP’s value. Historically, XRP’s price has surged 100–200% around past Swell events (source: @RipBullWinkle).
Conclusion
XRP’s future depends on gaining institutional support through RLUSD and ETFs, making technical improvements like the EVM sidechain, and navigating regulatory decisions. Keep an eye on the SEC’s ETF rulings in October and announcements from the Swell Conference in November for signs of continued growth. As traditional finance increasingly adopts blockchain technology, XRP’s role could become even more important.
What updates are there in the XRP code base?
The latest updates to the XRP Ledger focus on improving security, scalability, and meeting institutional compliance standards.
- Permission Delegation Patch (Oct 6, 2025) – A critical security fix was released after a vulnerability was found.
- DynamicNFT Activation (Jun 11, 2025) – Introduced flexible NFTs that can update their information after creation.
- Mainnet UNL Migration (Sep 30, 2025) – Validator management shifted to the XRPL Foundation for better decentralization.
Deep Dive
1. Permission Delegation Patch (Oct 6, 2025)
Overview: A serious security issue in the PermissionDelegation feature was fixed. This flaw could have allowed unauthorized access to accounts.
The update (rippled v2.6.1) came after the problem was disclosed on September 15. To protect the network, developers temporarily turned off this feature on the test network and reset it to prevent disruptions.
What this means: This is a positive sign for XRP because it shows the team is actively managing security risks, which is important for big investors and institutions. Operators running network nodes need to update to v2.6.1 to keep their services running smoothly. (Source)
2. DynamicNFT Activation (Jun 11, 2025)
Overview: The DynamicNFT feature allows NFTs (digital collectibles) to have changeable information, such as updated ownership history or new details about digital art.
This means creators can update their NFTs after they are created, while still keeping a secure record on the blockchain.
What this means: This update doesn’t immediately change XRP’s value but adds new possibilities for NFTs in areas like gaming and intellectual property licensing. For this to be useful, wallets and exchanges will need to support the new feature. (Source)
3. Mainnet UNL Migration (Sep 30, 2025)
Overview: The management of the default validator list (UNL) was moved from Ripple’s old system to the XRPL Foundation. Validators help confirm transactions and keep the network running smoothly.
Node operators using default settings had to update their configurations by September 30 to avoid network issues.
What this means: This change is good for XRP because it makes the network more decentralized and better aligned with regulatory standards, which is important for attracting institutional users.
Conclusion
These recent updates show that the XRP Ledger is becoming a more secure and enterprise-ready blockchain. Security fixes help keep the network stable, while new features like DynamicNFTs open up fresh opportunities. It will be interesting to see how developers respond to these improvements in the last quarter of 2025.