XRP dropped 6.23% in 24 hours to around $1.38, the worst performance among the top ten cryptocurrencies by market cap. The token is unwinding leverage after rocketing from $1.00 to a near $1.70 intraday high in four days, while XRP-linked ETFs keep logging net inflows.
XRP led the crypto market lower on Wednesday, falling 6.23% over 24 hours to trade near $1.38, the steepest drop among the ten largest cryptocurrencies by market cap. The pullback follows one of the token's sharpest rallies in months.
The token rocketed from around $1.00 on August 18 to an intraday high near $1.69 four days later, briefly touching the $1.70 mark. Bitcoin's own pullback from its $80,000 high then dragged altcoins lower across the board.
Leverage unwind, not an exit
Even after the drop, XRP is still up 35.55% over the past seven days, trailing only Hyperliquid's 38.65% weekly gain among the top 10 and outpacing Bitcoin and Ethereum. XRP-linked ETFs, funds that track the token's price without direct holding, have logged nine straight days of net inflows, a sign the pullback reflects a leverage problem rather than institutions exiting.
Bitcoin, meanwhile, cleared $80,000 for the first time in months on Tuesday before cooling toward the $78,000 zone on Wednesday, with traders bracing for the day's core PCE inflation data and Nvidia's earnings report.
The $1.40 level is the line
On the daily chart, XRP opened at $1.4344, tagged a high of $1.4513 and now trades near $1.3790, down 3.86% on the candle itself. That puts the token back at the $1.40 zone that flipped from resistance to support during last week's breakout, the same level where XRP first reclaimed its 200-day exponential moving average.
The indicators disagree with each other. The Relative Strength Index sits at 66.7, still bullish but closing in on the 70 line where traders typically book profits. The Average Directional Index, which measures trend strength, is running at 44.1, well above the 25 threshold that confirms a trend, with the positive directional line still reading above the negative one. But the 50-day moving average remains below the 200-day moving average, a structural holdover from the downtrend that has defined XRP's chart for most of the year.
For XRP, the fight is narrow: hold $1.40 and the seven-day rally stays intact as a normal cooldown. Lose it on a daily close, and the token's own short-side signals suggest sellers could press toward the lower boundary of the support zone built up since August's breakout.
Sources: Decrypt, Yahoo Finance
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