XRP investors faced a turbulent day as the cryptocurrency plunged 6.36% to $2.95 on August 1, 2025. The sharp decline came amid growing concerns over U.S. trade policies and aggressive profit-taking by traders. Here’s what you need to know about this sudden XRP price drop.
Why Did XRP Price Drop Suddenly?
The XRP price decline was driven by three key factors:
- U.S. tariff increases (15-40% on goods from 70+ countries)
- Massive profit-taking (93% of XRP supply currently in profit)
- Large transfers by Ripple co-founder Chris Larsen ($140M to Binance)
How U.S. Tariff Fears Impacted XRP
The new U.S. tariff policy created market-wide uncertainty, particularly affecting risk assets like cryptocurrencies. Key impacts include:
| Commodity | Previous Tariff | New Tariff |
|---|---|---|
| Copper | 25% | 50% |
| Electronics | 15% | 30% |
| Textiles | 20% | 35% |
Profit-Taking Pressure on XRP
On-chain data reveals concerning signals for XRP:
- 93% of circulating supply in profit
- $2.4B drop in futures open interest (21% decline)
- Key support level at $2.60 could trigger more selling
Can XRP Recover From This Drop?
Analysts suggest potential recovery scenarios:
- Break above $3.30 could signal new rally
- Bullish flag pattern from late 2024 still valid
- 57% YTD gain shows underlying strength
FAQs About the XRP Price Drop
Q: How low could XRP go?
A: If $2.60 support breaks, we could see $2.30-$2.50 range.
Q: Is this a good time to buy XRP?
A: Wait for confirmation of support holding before entering new positions.
Q: How does this compare to Bitcoin’s performance?
A: Bitcoin also weakened but only dropped 3.2% vs XRP’s 6.36%.
Q: When might XRP recover?
A: Potential recovery could begin if it holds above $2.80 and breaks $3.30.
