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XRP Price Drops 7% Amid $1B Liquidations but Shows Signs of Recovery

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XRP experienced a notable decline, dropping 7% amid widespread market liquidations that rattled investors and tested key support levels. Despite the sharp fall, signs of renewed accumulation from large holders have emerged, hinting at potential stabilization.

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Massive Sell-Off Hits XRP

Over the past 24 hours, XRP fell from $3.34 to $3.10, marking its lowest level in over a week. The session witnessed extreme volatility, with intraday price swings spanning $3.34 to $3.05 — a move of nearly 8.7%. The most severe decline occurred midday, when the price dropped from $3.22 to $3.09 in one of the largest single-hour trading volumes of the quarter, reaching 436.98 million units.

This sell-off coincided with a broader market liquidation exceeding $1 billion, amplifying downside pressure across major cryptocurrencies. Analysts note that profit-taking in U.S. equities contributed to the negative risk sentiment, driving further selling pressure in the crypto market.

Signs of Stabilization and Accumulation

Despite the turbulence, XRP saw late-session buying activity that suggests renewed interest from institutional investors and large holders. Following the midday drop, XRP traded in a narrow $3.05–$3.13 band, indicating reduced sell-side momentum. A small recovery from $3.09 to $3.10 broke back above immediate resistance, hinting at early-stage re-accumulation.

Technical indicators confirm support between $3.05 and $3.09, with resistance at $3.13 and a secondary level at $3.20. Declining trading volume after the massive midday spike suggests liquidation exhaustion, while two volume surges in the final hour — 4.53M and 3.76M — indicate institutional interest at support levels.

What Traders Are Watching

Market participants are closely monitoring whether XRP can hold the $3.05 support during future market volatility and if follow-through buying above $3.13 will confirm a short-term reversal. Large-holder wallet activity and shifts in XRP derivatives funding rates may provide early signals of renewed leverage entry. Additionally, broader correlations with equity markets, especially as Fed rate cut expectations evolve, could continue to influence XRP’s price action.

Ripple’s CTO reaffirmed the XRP Ledger’s readiness for global financial infrastructure, providing fundamental backing amid technical weakness. While the market faces short-term volatility, early signs of accumulation suggest that XRP’s recent sell-off could stabilize if institutional interest persists.

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