XRP Plunges 10% in a Day — What Triggered This Sell-Off?

Jakarta, July 22, 2025 – The cryptocurrency XRP has recorded a sharp decline of nearly 10% within the past 24 hours, dropping from around US$3.45 to US$3.10. This sudden wave of selling pressure raises a critical question: what factors drove this significant correction?

Wave of Liquidations and Over-Leveraged Positions

Data from Coinglass revealed massive liquidations on XRP long positions worth between US$89 million and US$117 million, particularly among traders using high leverage. Forced sell-offs across several exchanges, including Upbit, caused XRP’s price to briefly dip to US$2.96 before making a slight recovery.

Large Transfer by Ripple Co-Founder

On-chain monitoring detected a surprising move from Chris Larsen, Ripple’s co-founder, who transferred 175 million XRP (approximately US$175 million) to multiple wallets, including exchange addresses. This activity sparked market speculation about potential additional sell-offs, further worsening downward pressure.

Healthy Correction After Aggressive Rally

Since early July, XRP surged 38–55%, outperforming Bitcoin. However, technical indicators such as Bollinger Bands and RSI signaled overbought conditions, prompting profit-taking. RSI dropped from extreme levels to around 68, while MACD showed weakening bullish momentum—a sign of a natural technical correction.Regulatory Uncertainty Weighs on Sentiment. Amid broader altcoin weakness, investors remain cautious due to regulatory uncertainty. Reports from Reuters and Barron’s highlighted delays in the approval of non-Bitcoin ETFs, including XRP-based funds, which dampened market optimism.

Rebound Potential: Signs of Stabilization Emerging?

Despite the sharp correction, the chart shows a series of higher lows after hitting US$2.96, moving to US$3.06 → US$3.09 → US$3.11. Analysts view this as an early signal of stabilization and institutional accumulation.
According to Brave New Coin, XRP could retest US$3.55 if it breaks through the key resistance zone of US$3.23–US$3.25.