XRP Plunges in Altcoin Exodus: Lawsuit Fallout No Longer Driving Price Action, Analysts Claim
XRP gets hammered as altcoins bleed out across crypto markets.
Market Shifts Focus
Legal uncertainty takes a backseat to macroeconomic pressures crushing speculative assets. The SEC lawsuit that once dominated XRP's price trajectory now plays second fiddle to broader market forces.
Traders pivot to risk-off strategies amid regulatory uncertainty and inflation concerns. Analysts note the decoupling between court developments and price movements—a stark contrast to 2023's lawsuit-driven volatility.
Wake-Up Call
The altcoin rout exposes how quickly crypto narratives shift when real-world economics kick in. Wall Street's favorite parlor trick—pretending lawsuits matter more than liquidity—gets another reality check as XRP follows the herd off the cliff.
Profit-Taking, Liquidations, and Market Sentiment
XRP’s ETF debut generated record $37 million in day-one trading volume, but it also triggered a classic “sell the news” response. Many institutional investors exited positions, sparking heavy selling pressure.
Adding to the downturn, XRP traders faced nearly $79 million in liquidations over the past day, with long positions making up the majority. This wave of forced selling drove prices down, undermining confidence among retail investors.
Meanwhile, the broader crypto market lost 4% in value, with billions wiped from altcoin capitalization. Ethereum (ETH) and other major assets also saw steep declines, further dragging XRP down.
Can XRP Avoid a Steeper Decline?
XRP is now battling to hold support near $2.80, with traders warning that a break lower could expose the token to the $2.50–$2.60 zone. Bulls, on the other hand, need to reclaim the $3.10–$3.20 range to re-establish momentum and revive hopes of testing the $3.65 all-time high.
Market sentiment remains mixed. Some commentators, such as analyst BarriC, suggest XRP could still surge dramatically if it follows historical patterns, even hinting at a possible $300 price target by 2026.
Others remain skeptical, pointing to continued selling pressure and tighter regulatory compliance requirements for altcoin ETFs. For now, XRP holders face a crucial test: defend current levels or risk deeper losses as the altcoin market selloff accelerates.
Cover image from ChatGPT, XRPUSD chart from Tradingview
