XRP fell after a broad crypto sell-off, a fresh 1 billion XRP escrow release, and growing selling activity from large holders. The token slipped about 6% to $2.26.

XRP dropped today as traders reacted to new supply, weaker market sentiment, and technical signals pointing to lower momentum. The token slid roughly 6% to around $2.26, showing how quickly sentiment can shift when pressure builds across the crypto market.

So, why is XRP down today? Let’s look at some facts. 

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Market-Wide Shock: Bitcoin Drop and Large Liquidations

The decline started with a wider sell-off across the crypto market. Bitcoin lost ground, triggering over $1.3B in liquidations across crypto futures within 24 hours. Most of those were long positions, meaning traders betting on higher prices were forced to close their trades. 

As Bitcoin fell below short-term support levels, investors pulled back from altcoins, causing extra selling pressure on XRP. When Bitcoin weakens, altcoins often fall faster because they carry higher risk and lower liquidity.

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Escrow Release and Whale Selling

Ripple’s regular monthly release of 1 billion XRP from escrow added to the selling pressure. This release increases the number of tokens available for trading and can temporarily weigh on price when demand is soft. 

At the same time, on-chain trackers reported large XRP transfers to exchanges, a sign that some major holders were taking profits or reducing exposure. Combined, these moves created more short-term supply than buyers could absorb, pushing prices lower.

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Technical Pressure: Death Cross and Support Levels

From a technical view, XRP is showing signs of weakening. The 50-day moving average is about to cross below the 200-day moving average, a pattern known as a “death cross.” 

Traders see this as a bearish signal that momentum is fading. The token is also testing the $2.20 support zone. If it breaks below that range, selling could accelerate as stop orders are triggered.

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Conclusion

XRP’s price crash today comes from a mix of wider market weakness, Ripple’s escrow unlock, and selling by large holders. With the market still shaky, traders are watching how XRP performs around $2.20 and whether Bitcoin can stabilize above key levels.

Crypto investments are risky and may not suit retail investors; you could lose your entire investment. Understand the risks here