Why Is XRP Dropping?

On June 9, 2025, the total cryptocurrency market capitalization was approximately $3.46 trillion, with a slight daily decrease of around 0.4%. As of press time, XRP price was trading at $2.24, based on Coingecko data. Prices have gone down 0.83% in the past twenty-four hours and 0.60% over the previous seven days.

Although XRP has recovered more than 40% since April 7, it remains 33.9% below its January 2025 high of $3.40. With this context, many traders are asking why is XRP dropping today and whether the trend will continue. To understand the recent price action, it's important to examine both the overall market environment and factors specific to XRP.

General Reasons Why Crypto Prices Drop

Cryptocurrency markets respond to economic events much faster than most traditional investment options. A statement released on May 29, 2025, was one of the major causes of the current downturn. U.S. Treasury Secretary Scott Bessent stated that the U.S.-China trade talks had ground to a halt. Because of this statement, global uncertainty increased which resulted in many markets going down.

Doubt about the economy or potential policies often causes investors to avoid investing in higher-risk assets. Cryptocurrencies, including Bitcoin and XRP, fall into that category. The news immediately influenced how investors felt about the company. The impact was that digital asset values started to fall rapidly.

Bitcoin leads the charge in the crypto market. A decline in Bitcoin usually leads to other cryptocurrencies dropping too. At the same time, $11.75 million worth of Bitcoin was liquidated in losing positions. Ethereum achieved $3.55 million. XRP’s price began to fall during the same period.

Source: Coinglass

In addition to macroeconomic factors, the use of leverage in cryptocurrency trading creates fast-moving price action. When prices move slightly against traders who are using borrowed funds, exchanges trigger automatic liquidations. These forced sales can push prices lower within minutes. XRP has been affected by this pattern more than once in recent sessions.

Recent Trends in XRP Price Movement

XRP has shown volatility in recent weeks. While the price rebounded from April lows of around $1.60 to $2.30 by early June, it failed to hold above key resistance zones. On June 4, it was trading at $2.24. The 24-hour volume stood at $1.88 billion, placing XRP among the top actively traded cryptocurrencies.

Resistance at $2.70 has been in place for nearly three months. The asset has struggled to move above that level. Support is visible at $2.0350. The next lower support level is around $1.7600. This price area held for nearly six months in the past. If XRP extends its losses, it may retest this zone.

Technical indicators currently point to weak momentum:

• The Relative Strength Index (RSI) is at 46, suggesting low buying pressure.
• The MACD histogram remains below zero, confirming bearish sentiment.

XRP 1-day Price Chart | Source: TradingView

On June 4, XRP experienced a fast intraday reversal. The price rose to $2.36 but then dropped to $2.29 within an hour. CoinGlass reported $474,000 in long liquidations during that short timeframe. At the same time, short liquidations barely exceeded $65. This data shows that most traders were holding bullish positions and were forced to exit.

This event marked one of the most rapid liquidation spikes for XRP in recent history. These fast reversals can cause traders to close positions out of caution, reducing buying pressure.

Why XRP Is Dropping Today

Institutional demand for XRP investment products has declined. According to CoinShares, XRP exchange-traded products saw outflows of $28.2 million during the last week of May. The total for the month stands at $56.6 million. In contrast, Ethereum investment products gained $321.4 million during the same period. Solana and SUI also recorded positive flows.

This drop in institutional exposure is a key factor in why XRP is dropping right now. The numbers show that large investors are reducing their positions. This trend reduces liquidity and lowers the price over time.

On-chain data from Glassnode shows XRP’s Net Unrealized Profit/Loss (NUPL) is in the “Belief–Denial” phase. Historically, this stage marks local price tops. It suggests many holders are in profit but uncertain about the asset’s future. In past cycles, XRP has declined after entering this phase.

XRP net unrealized profit/loss (NUPL) | Source: Glassnode

The dispute between Ripple and the U.S. Securities and Exchange Commission ongoing adds legal risk. The SEC claims that XRP is an unregistered security under the Howey Test. Recently, a third party has challenged the way the case was understood. The case is still open. Uncertainty related to the lawsuit is a contributing factor to XRP’s recent price dropping.

Besides, talks and debates on social media have affected people’s thoughts in the immediate term. Public data shows XRP is among the most talked-about cryptocurrencies. Posts about technical forecasts, including large drops from current levels, have been widely circulated. Traders may respond by exiting positions or reducing exposure.

Challenges in XRP Price Prediction

Accurate XRP price prediction remains complex. The market is affected by a combination of technical signals, legal updates, and broader economic conditions. Each of these factors can shift rapidly.

Technical tools like RSI and MACD provide useful data, but they cannot account for external developments such as court rulings or regulatory announcements. Liquidation events, like the one on June 4, can override technical setups completely. Prices often move based on trader positioning rather than long-term valuation.

XRP also remains under scrutiny due to the pending SEC lawsuit. Until there is a clear resolution, predicting price direction carries legal uncertainty. Any news regarding the classification of XRP could lead to a sudden change in trading behavior.

The ETF market has also entered the conversation. Polymarket data shows that XRP ETF approval odds have reached 93%. If accurate, this would open the door to wider investment access. However, such outcomes are not guaranteed. Until approval is confirmed, investor hesitation remains.

Ripple ETF Approval in 2025 Odds | Source: Polymarket

Forecasts based on historical chart patterns have been circulated by analysts online. While some of these calls have matched previous movements, they are speculative in nature. These projections do not factor in external developments or investor behavior.

Leverage adds another layer of difficulty. Traders often borrow capital to open larger positions. When prices move against them, liquidations occur. This creates volatile movements that are hard to predict.

What Could Make XRP Go Up Again?

Despite the recent decline, there are developments that could improve XRP’s outlook.

Ripple CEO Brad Garlinghouse confirmed that Ripple is in contact with firms from real estate, insurance, and trade finance sectors. These companies are exploring XRP’s use for payments and treasury operations. Such integrations could increase real-world usage.

Ripple has announced the $REAL token, built on the XRP Ledger. It targets the global real estate market, which is estimated at over $654 trillion. The token’s presale is scheduled for June 7, with a limited supply of 100 million tokens in the initial round.

Source: X

These projects could support the XRP ecosystem by increasing on-chain activity and demand. Real-world applications often lead to stronger fundamentals.

Legal clarity could also boost confidence. If the SEC case is resolved favorably, it would remove a major barrier to institutional participation. A court decision or settlement would provide more certainty to investors.

XRP remains above long-term support levels. The $2.0350 area and the $1.7600 mark are still holding. These levels were tested in previous months. If buyers step in at these points, the price could stabilize.

Conclusion

XRP’s price decline reflects current market conditions and token-specific developments. The recent drop in the asset is tied to less interest from institutions, liquidations and questions about the law. Additional pressure is being caused by factors affecting the market, including concern about U.S.-China trade.

XRP’s legal case with the SEC remains open. There has been a decrease in institutional flows. There have been forced sales of assets. These factors explain why XRP is dropping today and why sentiment remains cautious.

Also, the $REAL project, ongoing partnerships with other industries and the development of ETFs may introduce more ways to use the platform. Everyone is watching the price movement and investors are waiting till there are clear legal changes before making decisions.

XRP’s short-term direction depends on these variables. It will probably take investor confidence, more people accepting crypto and clearer regulations to help crypto prices recover.