XRP Plunges 6% as Trading Frenzy Wipes Out $18 Billion in Market Cap

XRP just got hammered—a 6% nosedive triggered by explosive trading volume vaporized a staggering $18 billion from its market valuation.

The Volume Tsunami

Trading activity went parabolic, creating a sell-pressure vortex that caught even seasoned traders off guard. The spike didn't just nudge the price—it bulldozed through support levels like they weren't even there.

Market Mechanics Exposed

When volume spikes this dramatically, it reveals how fragile these valuations can be. The 'efficient market' theory looks pretty shaky when a single trading surge can erase billions in minutes—almost makes you nostalgic for traditional finance's plodding pace. Almost.

This kind of volatility serves as a brutal reminder that in crypto, fortunes can disappear faster than a Bitcoin miner's profit margins during a bear market.

What to Know:

• XRP lost over $18 billion in market value during the past week, falling 10.22% and breaking below the $3.00 psychological threshold
• Trading volume spiked to 276.77 million during the 17:00 hour rejection at $2.80, compared to the 108.42 million daily average
• Despite SEC approval of the first U.S. XRP ETF, Federal Reserve Chairman Powell's warnings on valuations and rising Treasury yields offset optimism

Market Dynamics Drive Sharp Reversal

The cryptocurrency's push above $2.90 collapsed under concentrated selling pressure during the afternoon session. Sellers dominated trading after the $2.80 rejection created what analysts termed a distribution zone that capped further upside momentum. The MOVE erased gains accumulated over recent trading sessions and confirmed fresh resistance at the $2.80 level.

Subsequent recovery attempts stalled around $2.81-$2.82, establishing new resistance clusters that prevented meaningful rebounds. XRP traded within a 6.3% intraday range between $2.92 and $2.74 before settling NEAR current levels.

The final trading hour produced a brief 1.09% bounce from $2.75 to $2.78, driven by concentrated institutional flows between 00:50-00:57 GMT.

Market participants noted the selling pressure came despite positive regulatory developments. The SEC's recent approval of the first U.S. XRP ETF had initially generated optimism among traders. However, Federal Reserve Chairman Jerome Powell's cautionary statements about cryptocurrency valuations and climbing Treasury yields created headwinds for digital assets broadly.

Technical Patterns Signal Consolidation Phase

The high-volume rejection at $2.80 established a clear resistance level that has proven difficult for buyers to overcome. Trading data shows the 276.77 million share spike during the afternoon session represented the heaviest single-hour volume in recent weeks. This concentration of selling activity suggests institutional participants were actively reducing positions.

Short-term support now sits at the $2.75-$2.77 zone, which defenders successfully tested during late-session trading. Technical analysts identify $2.70 as the next psychological support level should current floors fail to hold. The consolidation pattern near $2.77 indicates market indecision before the next directional move.

Resistance clusters have formed between $2.81-$2.82 based on multiple failed retest attempts.

The initial rejection point at $2.80 remains the primary hurdle for any meaningful recovery attempt. Market structure suggests XRP may need to build a base above current levels before challenging higher prices.

Over the past week, XRP's market capitalization contracted by $18.94 billion, representing a 10.22% decline that pushed the token below the closely watched $3.00 threshold. This breakdown has shifted near-term sentiment from bullish to neutral among many institutional traders.

Key Terms and Market Context

XRP represents the native token of the Ripple network, designed for cross-border payment settlements. Market capitalization refers to the total dollar value of all XRP tokens in circulation, calculated by multiplying current price by total supply. An exchange-traded fund allows traditional investors to gain cryptocurrency exposure without directly holding digital assets.

Volume spikes indicate periods of increased trading activity, often signaling important price levels or institutional positioning changes. Resistance levels represent price points where selling pressure historically overwhelms buying demand.

Support zones mark areas where buyers typically emerge to prevent further declines.

The $2.80 level has emerged as a critical technical barrier, with multiple rejection attempts confirming its significance. Trading ranges help identify periods of consolidation before potential breakout moves in either direction.

Closing Thoughts

XRP's recent decline reflects broader cryptocurrency market pressures despite positive regulatory developments. The token faces immediate resistance at $2.80 with support holding near $2.75, suggesting continued consolidation in the near term.