XRP holders are feeling the sting after the token suffered a sharp pullback, erasing a chunk of its July gains in what appears to be a mix of technical unwinding, opportunistic profit-taking, and a sudden regulatory curveball.
At the time of publication, XRP is trading at $3.11, down 10.29% in the past 24 hours. In a dramatic move, the token plunged to $2.99, briefly losing the key $3 psychological level before clawing back to reclaim it as support.
The rapid dip followed XRP’s recent rally, where it had climbed over 42% in the past month, fueled by optimism around broader altcoin flows and a retest of the $3.65 resistance zone on July 18.
But momentum has reversed sharply. More than $105 million worth of long positions were liquidated, triggering a cascading wave of sell-offs across exchanges. Meanwhile, Upbit’s release of 75 million XRP into circulation added to the flood of supply, weighing heavily on prices. At the same time, Bitcoin’s resurgence has stunted altcoin momentum, with BTC dominance rising and sidelining speculative capital that had previously rotated into XRP.
XRP price analysis
Technical traders aren’t getting much relief either. On the hourly chart, a death cross has emerged, with the 50-day EMA slipping below the 100-day EMA, a pattern that often signals short-term weakness.
Adding insult to injury, the sell-off was intensified by an unexpected regulatory twist. On July 22, the U.S. Securities and Exchange Commission (SEC) abruptly reversed course on the Bitwise 10 Crypto Index Fund conversion into an ETF.
The product, which would have included XRP, had received an initial green light from the SEC’s Division of Trading and Markets just hours earlier. The sudden U-turn rattled investor confidence, contributing to the steep decline.
As a result, XRP’s market capitalization has fallen from $205 billion to $184 billion, after briefly plunging to $177 billion before stabilizing.
For now, XRP’s bounce off the $3 level provides some relief for bulls, but with technicals flashing caution and regulatory uncertainty clouding the outlook.
