Ripple tumbled to a low of $2.7340 on Sunday, Aug. 3, down by over 22% from its highest point this year. It dropped to its lowest level since July 13, erasing billions of dollars in value.
The sell-off followed a wider crypto and stock market downturn fueled by economic concerns tied to President Trump’s new tariffs and a string of weak U.S. jobs data.
Bitcoin’s (BTC) retreat from its recent record high, alongside declines in Ethereum (ETH) and Solana (SOL), dragged the entire digital asset space lower. Adding to XRP’s woes, Ripple co-founder Chris Larsen reportedly offloaded over $140 million worth of tokens. Still, bullish signals remain: strong fundamentals, rising odds of an XRP ETF approval, and technical patterns all suggest a potential rebound may be on the horizon.
Summary
- XRP price has plunged into a local bear market after falling by 22% from the YTD high.
- The crash coincided with the ongoing weakness in the crypto market.
- A cup and handle pattern points to an eventual Ripple price rebound.
Why XRP price crashed
Ripple token crashed primarily because of the ongoing weakness in the crypto market. Bitcoin, which drives the crypto market, dropped from the all-time high of $123,200 to $112,000.
Other top cryptocurrencies like Solana, Ethereum, and Avalanche have also dropped in the past few days.
The decline also coincided with the performance of the stock market as the Nasdaq 100 and Dow Jones fell by over 500 points on Friday.
Market participants are reacting to signs that the American economy was slowing because of Donald Trump’s tariffs. For example, the economy averaged 35,000 jobs in the last three months, the lowest level since 2020. This weakness could continue as tariffs rise.
XRP price also plunged after insider sales. Larsen sold tokens worth over $140 million at its top. It is common for investors and insiders to sell some of their assets when they surge.
Third-party data shows that XRP has strong fundamentals, which may help to offset the ongoing weakness. For example, Polymarket data shows that the odds of the SEC approving spot XRP ETFs have jumped to over 80%.
More data shows that Ripple USD (RLUSD), its stablecoin, is gaining traction, with its market capitalization surpassing the $600 milestone just a few months after its launch.
Ripple price technical analysis points to a rebound
The daily chart provides a clearer reason why the XRP price is falling and why it may rebound soon.
This chart shows that the token bottomed at $1.6173 on April 7 and then bounced back to a high of $3.6552 on July 18. It has formed a cup-and-handle pattern, a popular continuation sign.
The ongoing pullback was likely part of the formation of the handle section of this pattern. It also dropped as it formed mean reversion, a situation where an asset drops back to its historical moving averages.
Therefore, XRP price will likely bounce back, and first retest the upper side of the cup at $3.3955 followed by the year-to-date high of $3.6552.
