On July 23, 2025, XRP experienced a drastic 10.34% decrease, marking its most significant drop since April 3. Trading at $3.09 on Binance, this altcoin approached the psychological threshold of $3. However, last-minute buying interventions temporarily prevented a more severe decline. Despite this, the potential for a second consecutive day of negative closing signals a market undergoing a confidence test.
Understanding the Sudden Drop in XRP
According to CoinMarketCap’s statistics, XRP ranked as the fifth weakest performer among the top 100 cryptocurrencies. Only Celestia (TIA), FLOKI (FLOKI), Worldcoin (WLD), and Aptos (APT) exhibited worse performances. As investors wonder whether XRP will manage to maintain the $3 threshold, the selling pressure continues to mount.
The drop commencing on July 23 tied with February 2 for the year’s worst daily performance. This decline followed March’s record 18.8% plunge, marking the second major shock. Similarly, on April 3, risky assets, including XRP, faced a 10.39% dip prompted by changes in customs tariffs.
CoinGlass data shows $112.81 million in XRP positions liquidated in the past 24 hours, with long positions contributing $105.79 million. Liquidations of this scale generated a domino effect in leveraged trades, leading to heightened volatility favoring sellers.
Upbit’s Impact on XRP Price Pressure
The day’s selling pressure centered around Upbit, a favored exchange among South Korean investors. The release of 75 million XRP in a single day rapidly increased liquidity, pushing prices downward. This reinforces earlier trends seen at the beginning of the month when South Korean purchases drove price increases.
Analysts suggest this selling wave partially results from global macroeconomic uncertainties coupled with profit-taking observed in recent weeks. Despite this, XRP’s ability to find buyers slightly above $3 indicates not all buyers have retreated from the market.
Nevertheless, successive red candlesticks suggest short-term volatility may persist for the altcoin. For XRP to climb back to the $3.50 region, it requires dismantling exchange sell walls and reducing leverage volumes.
