XRP, the cryptocurrency closely linked to Ripple, saw an 8% price drop today—its steepest decline in over two months. Despite staying near all-time highs, this sudden dip has left investors searching for answers. Below, we break down the key factors behind this bearish movement and explore whether recovery is imminent.
Missed Legal Clarification: Ripple CEO’s CBS Interview Fallout
A significant catalyst for XRP’s drop was Ripple CEO Brad Garlinghouse’s recent 60 Minutes interview on CBS. While discussing Ripple’s challenges, the segment failed to highlight a pivotal court ruling: XRP’s classification as a non-security by a Federal Judge.
Garlinghouse later voiced disappointment, calling it a "missed opportunity" to clarify Ripple’s legal stance. Within hours of the broadcast, XRP’s price fell 8%, bottoming at $2.35.
Liquidation Spree Worsens the Slide
The downturn accelerated with $14.5 million in XRP long-position liquidations** within 24 hours—part of a broader **$358 million crypto sell-off. This triggered a domino effect, further depressing prices.
Trading volume spiked to $12 billion daily**, but selling pressure slashed XRP’s market cap below **$136 billion, demoting it beneath Tether (USDT) in market rankings.
Profit-Taking and Shifting Focus
Investors are also cashing out after XRP’s November rally, while attention shifts toward Bitcoin and Ethereum—diminishing demand for XRP.
👉 Explore XRP’s long-term trajectory in our detailed analysis
Recovery Prospects: Critical Price Levels
Technically, XRP breached key supports like $2.45**, signaling potential short-term losses. However, it now floats near the **23.6% Fibonacci retracement level ($2.33), which could act as a stabilization zone.
A breakout above $3** might revive bullish momentum, paving the way for a **$5 target.
Short-Term Sentiment Remains Cautious
Negative funding rates and wavering trader confidence weigh on XRP, though its long-term outlook stays strong if it endures current pressures.
FAQs
Why did XRP drop 8%?
A mix of liquidations, negative sentiment, and Ripple’s missed PR opportunity during its 60 Minutes interview.
What’s XRP’s current price?
As of publication, 1 XRP = $2.44.
Can XRP rebound soon?
If it holds $2.33** and regains **$2.45, recovery chances improve. Long-term targets remain optimistic.