Why is XRP Dropping? Key Factors Behind

Cryptocurrency markets are known for sharp swings, and lately many traders are asking why is XRP dropping after testing highs above $3. Once celebrated for its fast, low-cost payment technology, XRP is now facing renewed selling pressure as global markets turn cautious and traders lock in profits. In this article, we’ll explore the latest XRP price movements, what drives its volatility, and what investors should know about its future potential.

but before that, do you know what is XRP Crypto? XRP is the native token of the XRP Ledger (XRPL), a blockchain designed for fast, low-cost international payments. Unlike Bitcoin, XRP is not mined, it was fully created at launch, with Ripple Labs still holding a large portion of the supply. Let’s find out more why is XRP dropping.

Why is XRP Dropping?

XRP is dropping today due to profit-taking near the $3.15–$3.30 resistance zone, broader crypto market weakness as Bitcoin retreats, and large holders moving XRP to exchanges. While short-term selling pressure weighs on price, the long-term outlook remains supported by Ripple’s recent legal clarity and growing payment use cases.

Macro Market Pressure

The broader crypto market weakened after signals that the U.S. Federal Reserve may hold rates higher for longer. Bitcoin dipped to $115k, dragging major altcoins including XRP, lower.

Profit-Taking After Recent Gains

Following Ripple’s legal resolution in early August, XRP surged above $3. Traders have since taken profits, creating short-term selling pressure near the $3.13–$3.30 resistance zone.

Whale & Exchange Flows

On-chain data shows large XRP wallets moving tokens to exchanges, often a sign of sell-side activity. Such movements can accelerate short-term declines.

Legal Update: Is the SEC Case Still a Risk?

The U.S. Securities and Exchange Commission (SEC) lawsuit was one of the biggest factors weighing on XRP since 2020, creating years of uncertainty for traders and forcing some exchanges to suspend trading. In August 2025, Ripple and the SEC reached a final settlement of $125 million, with the court confirming that XRP sales on exchanges are not securities.

This resolution removed the long-standing legal overhang, meaning the current drop in XRP is no longer about regulatory risk but rather market-driven factors such as profit-taking, Bitcoin’s pullback, and broader risk sentiment.

What is the Current Price of XRP

As of August 18, 2025, the current price of XRP is around $2.95, with an intraday range between $2.95–$3.14. XRP has recently pulled back after testing resistance levels near $3.30.

XRP’s price moves are influenced by:

• Bitcoin trends: XRP often follows BTC’s direction.
• Global markets: Interest rates, inflation, and risk appetite.
• Regulatory updates: Especially after Ripple’s high-profile battle with the SEC.

How High Will XRP Go?

Analysts believe XRP could rise to $3–$5 in the next crypto bull cycle, driven by Ripple’s legal clarity and growing adoption in cross-border payments. However, upside potential depends on broader market conditions and Bitcoin’s trend, while resistance near $3.30 may limit short-term gains.

Should I Buy XRP Now?

Whether XRP is a buy right now depends on your risk tolerance, time horizon, and thesis. XRP remains a highly volatile crypto asset that tends to track broader market sentiment and Bitcoin’s trend. The legal overhang has eased compared with past years, which supports liquidity and participation, but short-term pullbacks around key resistance levels are common as traders take profit.

If you believe in XRP’s role in fast, low-cost cross-border payments and can tolerate large swings, a phased approach (e.g., dollar-cost averaging) and strict risk management may suit you. If you prefer steadier returns or have a short time frame, waiting for clearer technical confirmation or calmer market conditions could be more appropriate. This is not financial advice.

How to Buy XRP (Step by Step)

• Choose a reputable, regulated exchange available in your region and create an account.
• Complete identity verification (KYC) and enable strong security (unique password, 2FA, withdrawal allow-list).
• Fund your account via bank transfer, card, or stablecoins, checking fees and processing times.
• Search for the XRP trading pair (e.g., XRP/USD, XRP/EUR, XRP/USDT) and decide on a market or limit order based on your entry plan.
• Place the order and review the execution details (filled price, fees, and final quantity).
• Choose storage: keep a small trading balance on the exchange and move longer-term holdings to a self-custody wallet (hardware wallet recommended).
• Keep records for taxes and tracking, set price alerts, and define exit rules (take-profit, stop-loss) before volatility tests your plan.

Conclusion

XRP’s recent drop is driven mainly by market-wide profit-taking, Bitcoin’s pullback, and short-term whale flows, rather than legal risks, which are now settled. With regulatory clarity in place, the long-term outlook for XRP will depend on adoption, global market sentiment, and whether it can break above resistance near $3.30.

For traders, volatility creates both risk and opportunity. At Ultima Markets, we provide the tools, insights, and secure trading environment to help you navigate assets like XRP with confidence. Whether you’re exploring crypto for the first time or fine-tuning advanced strategies, you can trade smarter and stay ahead of market shifts with us.