Ripple

XRP investors faced a brutal sell-off this week as the token’s market capitalization nosedived by $18.37 billion in just 24 hours. The cryptocurrency now stands at $190.4 billion, with prices dropping 9.6% to $3.21 despite recent gains.

Liquidation Crisis Worsens Sell-Off

The downturn triggered a massive liquidation imbalance:

• $37.85 million in long positions wiped out
• Only $360,000 in short positions affected
• 10,409% disparity between longs and shorts

With long positions averaging 100x larger than shorts, the market became hypersensitive to downward pressure. This leverage overload turned a minor dip into a cascading sell-off.

SEC’s “Bizarre” ETF Reversal Adds Pressure

The sell-off intensified when the SEC suddenly blocked Bitwise’s ETF conversion on July 22:

• Would have included XRP alongside BTC and ETH
• Reversed just hours after initial approval
• Follows similar pattern with Grayscale’s GDLC ETF

ETF analyst Nate Geraci called the move “bizarre,” especially given the SEC’s recent pro-crypto posture. The affected fund manages $1+ billion in assets and rebalances monthly.

What’s Next for XRP?

While Polymarket traders still give an 85% chance of 2025 approval, analysts warn of delays:

• Awaiting SEC’s new listing framework
• Final decision on Bitwise’s ETF due by October 2025
• Price remains vulnerable to regulatory shifts

Key levels to watch:

• Current price: $3.21 (down 9.6%)
• Next support: $3.00 psychological level
• Resistance: $3.50 recovery benchmark

XRP is making waves again, climbing 3.75% today to $2.27. The rally comes as Ripple applies for a national banking license—a move that could supercharge adoption of its RLUSD stablecoin and fuel further XRP gains.

Why This Matters

• Banking license approval could mirror December’s rally (when XRP hit $3.40)
• Trading volume spiked 35% to $3.99B—signaling strong market interest
• Futures traders are betting long, with open interest up 8% to $4.62B

Technical Breakout in Play

📈 Falling wedge pattern suggests a 78% upside (target: $3.96)
📈 RSI holding above 50 confirms bullish momentum
📈 Key resistance at $2.27—a close above could trigger a run to $3

What’s Next for XRP?

✅ Banking license approval = Bullish catalyst
✅ RLUSD adoption could tap into the $250B stablecoin market
✅ ETF speculation adds to upside potential

Key Levels to Watch:

• Support: $2.17
• Targets: $3 → $3.96

XRP is flashing warning signs after breaking down from a bearish chart pattern. With trading volumes dropping and whales selling, could we see a plunge to $1.60?

Bear Flag Breakdown: What It Means

XRP’s daily chart shows a concerning development:

• Broken support from bear flag’s lower trendline
• 26% downside risk to $1.63 (measured from flagpole height)
• Sell volumes spiked to $172M (highest since May 30)

The Directional Movement Index (-DI above +DI) confirms bearish momentum is strengthening.

Why Traders Are Nervous

Three red flags suggest further downside:

1. 90-day MVRV at 31% – indicates extreme profit-taking potential
2. Whales selling – on-chain data shows large holders exiting
3. 34% volume drop – suggests weakening buyer interest

Historically, when XRP’s MVRV exceeds 15%, corrections follow.

Potential Silver Linings

Not all indicators point down:

• MFI rising to 56 – could signal bear trap
• RLUSD growth – possible catalyst if GENIUS Act passes

But with geopolitical tensions weighing on crypto markets, the path of least resistance appears downward.

Key Levels to Watch

• Immediate support: $2.00 (psychological level)
• Target: $1.60-$1.63 (bear flag measurement)
• Reversal signal: Reclaiming $2.18 resistance

Ripple’s XRP token release in June broke from its usual schedule, signaling a strategic shift in how the company manages supply. On June 4, Ripple Labs unlocked 1 billion XRP, valued at around $2.2 billion, but unlike previous months, this drop didn’t happen on the first day.

Ripple Adjusts Monthly Escrow Pattern

Ripple typically releases tokens on the first day of each month. This regularity builds investor confidence and helps manage XRP’s circulating supply. However, since March 2024, these scheduled releases have started arriving later than usual—a trend that continued in May and again this June.

The company released the 1 billion XRP in three separate transactions, according to Whale Alert:

• 400 million XRP (~$882M) to wallet Ripple 26
• 500 million XRP (~$1.1B) to Ripple 27
• 100 million XRP (~$220M) back to Ripple 26

As a result, both Ripple wallets now hold 500 million XRP each.

670 Million XRP Locked Back in Escrow

Despite unlocking 1 billion tokens, Ripple also locked 670 million XRP back into escrow in two separate transactions:

• 470 million XRP
• 200 million XRP

This move returns about $1.46 billion to long-term hold status. The net increase in circulating supply now stands at 330 million XRP, raising the total available to approximately 58.76 billion.

Whale Activity and Coinbase Transfers Add to Buzz

Whale Alert also flagged nearly 54 million XRP moving into Coinbase. Initially, the source wallets were marked as unknown. However, blockchain analysis later confirmed that the tokens were transferred from Coinbase’s cold storage to active operational wallets.

These movements come amid rising optimism over a potential XRP ETF approval.

XRP ETF Approval Odds Surge

According to Coinspeaker, there’s now a 98% chance that the SEC will approve an XRP ETF by December 2025—a jump of 23% in just one month. The buzz surrounding ETF speculation may be contributing to market activity alongside the escrow news.

Meanwhile, the SEC has delayed its decision on Grayscale’s XRP ETF filing, instead launching a public comment period to gather feedback and analyze the case more deeply. This regulatory attention could have long-term implications for XRP’s market position.