XRP Prices Plunge by Double Digits – Over $90 Million in Long Investments Erased
In a dramatic turn of events, the third-largest cryptocurrency, XRP, plunged sharply on July 27, 2025. The decline, which saw XRP drop by approximately 13% to near $3.18, was primarily triggered by a large transfer of 50 million XRP by Chris Larsen, a co-founder of Ripple. This transfer raised sell pressure fears among traders, exacerbating the impact of broader crypto market turmoil, including a significant Bitcoin decline that led to over $500 million in liquidations across the market.
The weekend saw a slowdown in crypto markets, causing thinner liquidity which amplified price drops. As a result, XRP's trading volume plummeted by 37%, falling from over $50 million to around $31 million. The rapid price collapse followed a prior rally where XRP had surged from around $2.20 to highs near $3.65, a 65% gain over two weeks.
Despite the sharp pullback, technical indicators showed signs of potential support near $3.00–$3.10, a price level aligning with key Fibonacci retracements and previous breakout zones. Early rebounds from lows near $2.96 suggested institutional buyers may have been accumulating as prices dipped into oversold territory.
The plunge in XRP's value has resulted in a significant decrease in its market capitalization, although exact figures were not provided. The rapid selloff and ensuing liquidation waves likely trimmed XRP’s market cap substantially in a short span, reflecting both forced sell-offs by highly leveraged traders and market-wide bearish sentiment.
Data from CoinGlass shows that XRP longs were liquidated for over $93 million on a daily scale, making this liquidation the second-largest after Ethereum and above Bitcoin's $70 million. The recent drop has resulted in sideways trading between the previous and the latest All-Time Highs for XRP.
Despite the setback, it's worth noting that XRP set a new record at over $3.65, surpassing its January 2018 all-time high. Moreover, XRP's market cap flew past the $200 billion mark, underscoring its continued growth and potential in the crypto market.
In summary, the combination of internal factors (large token movement by a major holder) and external market pressures caused substantial losses for over-leveraged traders and a marked decrease in XRP’s market capitalization over the last several hours. The crypto market continues to display volatility, with XRP's recent plunge serving as a reminder of the risks associated with investing in this sector.
- The decline in XRP's value, following a large transfer of 50 million XRP by Chris Larsen, has raised concerns among investors and traders about the potential impact of blockchain technology on finance and investing.
- Amidst the crypto market turmoil, altcoins like XRP have shown significant price swings, indicating the volatility inherent in digital trading.
- The technology underpinning cryptocurrencies, such as blockchain, continues to be a subject of interest for institutional investors, as evidenced by their alleged accumulation during periods of price drops, like XRP's recent decline.
