The cryptocurrency market is no stranger to volatility, but recent events have sent shockwaves through the XRP community. On July 25, 2025, XRP, the third-largest cryptocurrency by market capitalization, experienced a dramatic 10.33% price correction. This significant drop was fueled by a potent combination of intensified whale selling and a staggering $86 million in long-position liquidations, marking its steepest daily decline since early April. For anyone following XRP news, this event highlights the interconnected dynamics of large holders and leveraged positions.
Understanding the XRP Price Plunge
The sudden downturn in XRP price was not an isolated incident but rather a confluence of factors. The 10.33% fall represented the steepest daily decline for XRP in months, pushing its value significantly lower. This immediate price action drew considerable attention to key technical levels, particularly the $2.95–$3.00 range, which serves as a critical liquidity zone. A sustained breach below this threshold could signal further bearish momentum, potentially exposing XRP to new downside targets.
Key Metrics from the Decline:
- Daily Price Drop: 10.33%
- Major Liquidation Event: $86 million in XRP long positions on Binance
- Whale Activity: Over 50 million XRP transferred to exchanges
- Open Interest Decline: From $10.94 billion to $9.10 billion in four hours
Whale Selling Pressure: A Deeper Dive
One of the primary catalysts for the recent XRP price depreciation was intensified whale selling. Specifically, reports indicated that over 50 million XRP, linked to a wallet associated with Ripple co-founder Chris Larsen, were transferred to exchanges. Such large transfers by significant holders, often referred to as ‘whales,’ typically signal an intent to sell, thereby increasing supply and putting downward pressure on prices. This activity stands in stark contrast to earlier positive whale movements that had previously preceded XRP’s rally in 2025, suggesting a shift in sentiment among large investors. The 90-day whale flow average has now turned negative, indicating a broader trend of distribution rather than accumulation among these key players.
The Impact of Crypto Liquidation
The $86 million long-position crypto liquidation on Binance was identified as the third-largest XRP liquidation event of the year, amplifying the market’s downward spiral. But what exactly is a liquidation? In leveraged trading, when a trader’s position falls below a certain margin requirement, the exchange automatically closes their position to prevent further losses, leading to a ‘liquidation.’ These events can create a cascading effect, as forced selling further depresses prices, triggering more liquidations and exacerbating market volatility. The sharp decline in open interest for XRP futures contracts, from $10.94 billion to $9.10 billion within a four-hour timeframe, directly reflects the unwinding of these leveraged positions and highlights broader market fragility.
Crucial XRP Support Levels to Watch
As the market digests these developments, attention has firmly shifted to the XRP support levels. The $2.95–$3.00 range is now a critical battleground for bulls and bears. This zone represents a significant liquidity cluster, and its defense is paramount for any potential rebound. A sustained breakdown below $2.95 could expose XRP to further downside risks, potentially targeting a secondary support cluster between $2.66 and $2.86. Conversely, a decisive rebound above $3.25 would signal renewed bullish momentum, possibly confirming a local bottom and alleviating immediate fears of a deeper correction. Despite the recent drop, XRP’s proximity to its all-time high of $3.84, achieved earlier in 2025, remains a key psychological hurdle for investors.
Navigating XRP News: What’s Next for Investors?
The past two weeks have seen a challenging period for XRP, dropping from $3.65 on July 13 to $3.10 by mid-July, underscoring the difficulties of sustaining upward momentum amidst macroeconomic uncertainty. Market participants remain divided on the immediate outlook. While some analysts maintain an optimistic $6 price target for XRP by 2025, the immediate future hinges on the successful defense of the $2.99 support level. A failure to hold this threshold could trigger cascading stop-loss orders and institutional selling, deepening the downturn. Conversely, stabilizing above this threshold may attract short-term buyers, potentially re-igniting the broader bullish trend observed in higher timeframes. The current environment underscores the interconnected nature of whale behavior, liquidation dynamics, and technical levels in shaping XRP’s trajectory. With over $112 million in long positions liquidated within 24 hours, the market’s ability to absorb such shocks will be critical for future price stability.
Investors are strongly advised to monitor key indicators:
- Whale Activity: Keep an eye on large transfers to and from exchanges.
- Open Interest Trends: Declining open interest can signal reduced speculative activity or unwinding of leveraged positions.
- Key Support/Resistance Levels: The $2.95-$3.00 range is crucial for XRP’s immediate trajectory.
Source: [1] [XRP Faces Potential Support Test Amid Third-Largest Liquidation and Whale Selling Pressure]( [2] [Real-Time Crypto News, Latest Cryptocurrency Updates]( [3] [XRP Price Prediction Signals $6 Target Despite Long Squeeze Pain]
Frequently Asked Questions (FAQs)
1. What caused the recent 10.33% drop in XRP price?
The significant drop was primarily caused by a combination of intensified whale selling pressure, including a transfer of over 50 million XRP linked to Ripple co-founder Chris Larsen, and a large-scale $86 million long-position liquidation event on Binance.
2. What is whale selling and how does it affect cryptocurrency prices?
Whale selling refers to large-volume sales of cryptocurrency by individual or institutional holders who own a significant amount of a particular asset (known as ‘whales’). When whales sell large quantities, it increases the supply on exchanges, which can depress prices due to increased selling pressure.
3. What is a crypto liquidation event?
A crypto liquidation event occurs in leveraged trading when a trader’s position no longer meets the margin requirements. The exchange automatically closes the position to prevent further losses, leading to forced selling that can accelerate price declines and contribute to market volatility.
4. What are the critical XRP support levels to watch?
The immediate critical support level for XRP is the $2.95–$3.00 range. If this level fails to hold, the next potential support cluster is between $2.66 and $2.86. Conversely, a rebound above $3.25 would signal renewed bullish momentum.
5. How does declining open interest relate to market fragility?
Open interest refers to the total number of outstanding derivatives contracts (like futures) that have not been settled. A sharp decline in open interest, as seen with XRP futures, suggests that leveraged speculative positions are being unwound. This can indicate reduced market confidence, a decrease in speculative activity, and can highlight underlying market fragility as traders close out their positions.
