XRP is back in the spotlight — but not for the reasons long-time holders would hope. The token has dropped sharply, sliding into a critical support zone that has repeatedly saved it from deeper losses since late 2023. With the broader crypto market under pressure, XRP now sits at a crossroads: either bounce from here or risk a far steeper correction.
XRP fell to $1.8430, marking a 47% drop from its yearly high. The sell-off has erased a massive chunk of its market cap, pulling it down to $115 billion, far below the nearly $200 billion it touched earlier in the year. Much of this decline mirrors the ongoing crypto-wide crash — Bitcoin, Ethereum, and most altcoins have collectively lost more than $1.2 trillion in value.
But despite the severe correction, several factors are giving XRP investors a reason to stay cautiously optimistic.
One of the biggest bright spots comes from the U.S. market. Fresh data from SoSoValue shows steady, uninterrupted inflows into XRP ETFs since launch — a strong signal of demand even during a downturn. Canary and Bitwise’s XRP ETFs alone have pulled in $422 million in inflows and hold $384 million in net assets, representing about 0.33% of XRP’s entire market cap.
And this may just be the beginning. More ETFs from major issuers like Franklin Templeton and Grayscale are set to go live soon. For context, Bitcoin and Ethereum ETFs now account for 5%–6.5% of the total value of their respective assets. If XRP even approaches the lower end of that range, ETF holdings could swell to over $5.7 billion — a major liquidity boost.
XRP also has momentum forming outside ETFs. Ripple’s USD stablecoin, which recently surpassed a $1 billion market cap, is gaining traction fast. Over $300 million of the supply now lives on the XRP Ledger, and that footprint is expected to grow.
Meanwhile, leverage in the XRP futures market has cooled. Open interest has dropped to $3.3 billion, down from more than $10 billion earlier this year. Lower leverage often sets the stage for healthier, more sustainable price movement.
On the technical side, XRP’s three-day chart paints a tense picture. The token has slipped below the 50% Fibonacci retracement and under both the 50-day and 100-day EMAs. Still, the $1.8430 support area has held multiple times in recent months. Losing this level would confirm a double-top formation near $3.4072 and could open the door to a fall toward $1.50.
But if buyers defend this zone again, XRP could climb back toward the $2.50 psychological barrier — setting up what could become the first step in a broader recovery.
For now, all eyes are on whether XRP can hold the line.
Also Read: Why Crypto Needs a New Language for Failure
