XRP, the native token of the XRP Ledger developed by Ripple, recently plunged to $2.1533, moving below its 50-day moving average and dropping by over 36% from its highest point this year. This decline marks a three-day consecutive drop, reflecting a broader sentiment shift within the crypto market. The current market downturn has impacted leveraged traders.
One trader, termed a “whale” due to the size of their holdings, has incurred an unrealized loss of $2.6 million amid the crash. The whale’s position, opened at $2.3715 with a 3x leverage, risks liquidation if the price falls to $1.3949. This trader also holds positions in other cryptocurrencies such as Ethereum, Solana, Cardano, and Cosmos, which have collectively resulted in weekly unrealized losses exceeding $8.4 million.
Several factors contribute to XRP’s recent price decline. The broader crypto market faced a downturn, with Bitcoin falling from $111,900 to below $104,000 on Friday. Market jitters were exacerbated by a post from Donald Trump threatening a 50% tariff on European goods, although a temporary respite came when he extended the deadline to July.
Renewed trade tensions between the US and China further dampened market sentiment. Historically, June has been a challenging month for cryptocurrencies, which may have influenced traders’ current positioning. The daily charts suggest continued downward pressure on XRP.
The price currently resides below the 50-day moving average, and technical indicators such as the MACD and the Money Flow Index are signaling bearish trends. Critical support levels to watch are $2 and $1.6129; a drop below these could confirm the risk of liquidation for leveraged positions. As XRP price hovers near critical support levels, traders are navigating heightened volatility driven by macroeconomic shifts and evolving regulatory landscapes.
While U.S. inflation data signaled a cooling trend, Ripple’s Chief Legal Officer (CLO), Stuart Alderoty, praised the introduction of a new bipartisan crypto bill, describing it as “a big step forward,” offering hope for the embattled crypto sector amid ongoing uncertainty. On May 30, the U.S. Bureau of Economic Analysis reported a drop in the Core Personal Consumption Expenditures (PCE) Price Index to 2.5% annually for April—its lowest level since March 2021. Despite this development, XRP remains fragile.
Ripple (XRP) was trading at around $2.14, down 2.92% in the last 24 hours at press time. XRP traders were rattled by a federal court’s decision to pause a ruling that previously blocked the implementation of President tariffs. The temporary reinstatement of tariff uncertainty added to investor caution.
As a result, XRP price extended losses, sliding to $2.17, down from a recent high of $2.65. Liquidations ensued, with nearly $30 million in leveraged positions wiped out. As price pressure mounts, Ripple’s top legal executive, Stuart Alderoty, offered a contrasting note of optimism.
Posting on X (formerly Twitter), Alderoty lauded the Digital Asset Market Clarity Act, a bipartisan bill introduced by a group of U.S. lawmakers. He described it as a “big step forward” for establishing much-needed clarity for digital assets like Ripple XRP. While regulatory optimism grows, traders remain cautious amid mixed technical signals.
The market sentiment remains divided.
xrp’s turbulent market moves
The Relative Strength Index (RSI) is nearing oversold territory, and the MACD is flashing bearish momentum, with the price failing to maintain levels above key moving averages.
Immediate support lies at $2.07 (200-day EMA), followed by $1.80 and $1.61. Resistance is pegged at $2.26 and $2.29, with a breakout above $2.59 possibly reigniting bullish momentum. Institutional developments continue to influence the Ripple market.
Brazil recently approved the world’s first crypto ETF, while several U.S. applications are pending. These milestones are seen as catalysts for long-term demand. On-chain metrics, however, remain weak.
In Q1 2025, activity dropped by 30–40%, and active addresses declined by 44% in May. Despite these concerns, large holders continue accumulating, and optimism around a U.S. spot XRP ETF remains a dominant narrative. The XRP SEC lawsuits and the broader Ripple cycle have long cast a shadow over investor sentiment.
Yet the convergence of regulatory progress, such as the Clarity Act, and initiatives highlighted by Ripple’s $300M reserve and plans for a stablecoin (RLUSD) could reshape the Ripple currency price landscape in the second half of 2025. Traders encountered a significant setback when leverage met a sudden intraday reversal. In the last 12 hours, long positions on XRP were liquidated at a rate 18 times higher than shorts — $952,790 versus just $52,800, according to CoinGlass.
This represents a staggering 1,805.7% imbalance, a figure that stands out in today’s market activity. The setup leading to the liquidations was fairly typical. XRP had been climbing steadily throughout the day, reaching a high of around $2.31 from an early-session low of $2.27.
However, just before the sell-off began, the price made one final upward push toward $2.36 before reversing sharply. This reversal within the next few hourly candles triggered a wave of liquidations. On the hourly chart, a clear sequence of red candles emerged as XRP’s price fell to $2.29, hitting stop losses and prompting forced selling.
Intense buying activity occurred right before the reversal, exacerbating the situation for bullish traders. The imbalance in liquidations is the critical story here. When 94% of liquidations come from one side, it indicates heavy one-way positioning — and the price did not need to drop far to inflict significant damage.
In the broader market, XRP was not alone. Over the same 12-hour period, total market liquidations across all assets reached $67 million, with long positions making up the majority. XRP’s concentrated and rapid impact was notable even though it did not constitute a crash, but for those unprepared, it certainly felt like one.
This event highlights the risks associated with leveraged trading and the sudden market reversals that can trigger substantial losses. As the market awaits further regulatory updates, traders are expected to monitor the $2.30–$2.50 price range closely. A decisive move in either direction could set the tone for XRP’s trajectory moving forward.