XRP Price Slides 4.5% as Market-Wide Sell-Off Continues, But Analysts Call It a ‘Healthy Pullback’

Highlights:

• XRP dropped 4.5% to $3.13, with $113M in long positions liquidated.
  
• Analysts view the dip as a healthy correction after a 66% rally.
  
• Key support at $2.93 and $2.57; resistance at $3.65 and $4.23.

XRP fell 4.5% today, following a broader decline in the cryptocurrency market, which lost 3% in value over the last 24 hours, now standing at $3.79 trillion.

XRP Price Drops 4.5% as $113M in Longs Liquidated

The token plunged as much as 19% intraday, hitting a low of $3.13 after reaching its recent multi-year peak of $3.66. The sharp decline occurred as many traders using high leverage were forced out of their positions, resulting in $113.6 million in XRP trades being liquidated, primarily long trades.

In total, XRP saw $113.6 million in liquidations, with $106.8 million coming from long trades. Across the entire cryptocurrency market, liquidations totaled $968 million in the last 24 hours, with Ethereum leading the wipeout at $195 million, of which $168 million were long positions.

Liquidations happen when leveraged trades are automatically closed due to price swings or lack of margin, often intensifying price drops. Despite the turmoil, some analysts believe this flush-out may be a sign of a local bottom. “Although we didn’t hit the $1 billion liquidation mark that often signals a short-term bottom, the recent volatility may have the same effect,” said pseudonymous analyst CryptoData on X.

Today we saw a massive flush across the board with most leverage longs/OI getting wiped. Although we didn't reach the $1B of liquidations that historically marks a local bottom within 1-3 days, but the volatility over the last few days may make up for that.

Liquidation Heatmap… pic.twitter.com/ugR3wfsjXB

— CryptoData (@TheCryptoData) July 24, 2025

Still, despite the steep correction, many experts view this as a “healthy pullback” and maintain bullish targets for XRP, with double-digit price forecasts remaining on the table.

Price Dips After Sharp Rally – Is Another Jump Coming?

XRP has pulled back after a strong rally that pushed its price from around $2.08 to a high of $3.65, a 66% gain in just a few days. As of now, the price has dropped to around $3.13, showing that bulls are taking a breather after the big move.

On the 12-hour chart, XRP is now correcting and holding near key support levels. The price recently fell below the $2.93 support (38.2% Fibonacci level). If it continues to fall, the next support zones to watch are $2.81 and $2.57. These levels could help the price rebound. The good news is that XRP is still trading above the 50-day moving average ($2.79) and the 200-day moving average ($2.37). These levels indicate that the broader trend remains bullish unless the price falls below them.

Technical indicators show mixed signals. The RSI (Relative Strength Index) has dropped to 48.47, showing that the coin is no longer overbought. This means the hype has cooled, but there’s room for another rally. Meanwhile, the MACD is flashing a bearish signal, with red bars and a downward cross, suggesting momentum has weakened.

The volume during the recent price jump was high, indicating strong interest from traders. If XRP can find support and bounce, it could re-target its recent high at $3.65. If bulls push above that, the next resistance levels are around $4.23 and $5.14. But if the price drops below $2.57, the short-term outlook could turn bearish, with a possible dip back to $2.08.

Support levels to watch are $2.93, $2.57, and $2.08. If the price drops, $2.93 may hold as the first support. If it breaks, the next strong levels are $2.57 and $2.08. On the upside, resistance levels are at $3.65, $4.23, and $5.14. If the price rises above $3.65, it could move toward $4.23 and possibly reach $5.14. These levels will help guide the asset’s next move.