XRP Price Plunge: Urgent Alert as Whale Selling Triggers $86M Liquidation and Tests Crucial Support

The world of cryptocurrency is no stranger to volatility, and recent events surrounding XRP have once again put this characteristic on full display. Investors woke up to a significant correction in the XRP Price, with the asset experiencing a sharp decline that sent ripples across the market. What exactly triggered this downturn, and what does it mean for the future of XRP?

XRP Price Under Pressure: Decoding the 10.33% Drop

On July 25, 2025, XRP, one of the leading cryptocurrencies by market capitalization, faced a substantial setback, registering a 10.33% drop in its value. This marked its steepest daily decline since early April, signaling intensified selling pressure. This significant price movement was not an isolated incident but rather the culmination of several converging factors, primarily driven by large-scale market participants and liquidation events. Understanding the dynamics behind this XRP Price action is crucial for any investor navigating the current market landscape.

Unpacking the Whale Selling Phenomenon: A Deeper Look

One of the primary catalysts for XRP’s recent downturn was heightened whale activity. In the crypto world, ‘whales’ are entities holding large amounts of cryptocurrency, and their movements can significantly influence market prices. The recent sell-off was exacerbated by the transfer of over 50 million XRP to exchanges, notably linked to a wallet associated with Ripple co-founder Chris Larsen. Such large transfers often signal an intent to sell, which naturally amplifies market volatility.

Adding to this pressure, analysts have observed a shift in the 90-day whale flow average, which has turned negative. This contrasts sharply with earlier positive whale movements that preceded XRP’s impressive rally earlier in 2025. Despite this, the underlying accumulation-distribution dynamic remains complex, with over 2,700 wallets still holding more than one million XRP each. This indicates a diverse range of strategies among major holders, making whale selling a critical factor to monitor for future XRP News.

The Avalanche of Crypto Liquidation: What $86 Million Means for XRP

Beyond whale movements, a massive $86 million long-position liquidation on Binance played a pivotal role in the price correction. This event was identified as the third-largest XRP liquidation of the year, underscoring the fragility of leveraged positions in volatile markets. A liquidation occurs when a trader’s leveraged position is automatically closed by an exchange due to a significant price movement against their trade, leading to a forced sale.

The impact of such a large crypto liquidation extends beyond the immediate price drop. It also highlights broader market fragility and influences investor sentiment. Following this event, open interest for XRP futures contracts declined from $10.94 billion to $9.10 billion within a four-hour timeframe. This suggests a reduction in leveraged speculative positions, as traders became more cautious in the wake of the sudden downturn. The cumulative effect saw over $112 million in long positions liquidated within 24 hours across the market, showcasing the cascading effect of such events.

Crucial XRP Support Levels Under Scrutiny: Where Do We Stand?

The recent price action has brought the $2.95–$3.00 range into sharp focus. This zone is considered a critical liquidity area for XRP. A sustained breakdown below this level could expose XRP to further downside risks, potentially targeting a secondary support cluster between $2.66 and $2.86. Conversely, a rebound above $3.25 would signal renewed bullish momentum, possibly confirming a local bottom and attracting short-term buyers.

Here’s a quick overview of key XRP support and resistance levels to watch:

The immediate outlook for XRP hinges on the defense of the $2.99 support level. A failure here could trigger cascading stop-loss orders and institutional selling, deepening the downturn. Stabilizing above this threshold, however, may attract short-term buyers, potentially re-igniting the broader bullish trend observed in higher timeframes.

Beyond the Headlines: Broader Market Implications for XRP News

The recent events highlight the interconnected nature of whale behavior, liquidation dynamics, and technical levels in shaping XRP’s trajectory. While the asset’s proximity to its all-time high of $3.84, achieved earlier in 2025, remains a key psychological hurdle, a two-week correction, with XRP dropping from $3.65 on July 13 to $3.10 by mid-July, underscores the challenges of sustaining upward momentum amid macroeconomic uncertainty.

Market participants remain divided on XRP’s future. While some analysts project an ambitious $6 price target for XRP by 2025, the immediate challenges posed by significant sell-offs and liquidations cannot be ignored. The market’s ability to absorb such shocks will be critical in determining XRP’s path forward.

Actionable Insights for Investors

Navigating this volatile phase requires a cautious and informed approach. Here are some key takeaways for investors:

• Monitor Whale Activity: Keep a close eye on large transfers to exchanges, as these often precede significant price movements.
• Track Open Interest: A decline in open interest for futures contracts can indicate reduced speculative interest and a deleveraging phase.
• Watch Key Levels: The $2.95-$3.00 support range is paramount. A break below could signal further downside, while a hold or rebound could indicate stability.
• Assess Broader Market Conditions: Macroeconomic factors and overall crypto market sentiment continue to play a significant role in XRP’s performance.

Conclusion: Navigating the Volatility of XRP

The recent 10.33% fall in XRP’s price, fueled by substantial whale selling and an $86 million crypto liquidation, serves as a stark reminder of the inherent volatility in the cryptocurrency market. While the immediate focus is on the defense of critical XRP Support levels around $2.95-$3.00, the long-term outlook for XRP remains a subject of intense debate among analysts. Investors must stay vigilant, paying close attention to whale movements, liquidation trends, and key technical indicators. The ability of XRP to reclaim higher ground will depend on its capacity to absorb selling pressure and attract renewed buying interest, turning this current challenge into a potential opportunity for recovery.

Frequently Asked Questions (FAQs)

Q1: Why did XRP’s price fall by over 10% recently?

XRP’s price fell by 10.33% primarily due to a combination of significant whale selling pressure, including a transfer of over 50 million XRP to exchanges, and a large $86 million long-position crypto liquidation event on Binance.

Q2: What is ‘whale selling’ and how does it impact XRP Price?

‘Whale selling’ refers to large holders (whales) selling significant amounts of cryptocurrency. When whales sell, it can flood the market with supply, increasing selling pressure and causing the price to drop, as seen with the recent XRP News.

Q3: What does an $86 million crypto liquidation mean for the market?

An $86 million crypto liquidation means that leveraged trading positions worth that amount were automatically closed due to price movements going against the traders’ bets. This forced selling can exacerbate price declines and reduce overall open interest in futures contracts, indicating a deleveraging of speculative positions.

Q4: What are the critical XRP Support levels to watch?

The immediate critical XRP Support range is between $2.95 and $3.00. If this level breaks, the price could fall to secondary support between $2.66 and $2.86. A rebound above $3.25 would indicate renewed bullish momentum.

Q5: What is the long-term outlook for XRP given these events?

The long-term outlook for XRP remains mixed. While some analysts project a $6 price target by 2025, the immediate future hinges on the defense of key support levels and the market’s ability to absorb selling pressure. Macroeconomic conditions and broader crypto market sentiment will also play a crucial role.