XRP’s market capitalization witnessed a significant contraction, plummeting by over $7 billion as the broader cryptocurrency market cooled following aggressive rallies and heightened volatility. Investor profit-taking and shifting market sentiment drove the token’s valuation sharply lower.
The digital asset’s market cap receded from approximately $215 billion to around $208 billion, marking a 1.1% decrease within the reporting period. This decline coincided with substantial market liquidations exceeding $556 million, reflecting intense selling pressure and position unwinding.
Price action for XRP exhibited extreme volatility, plunging from $3.51 to lows near $3.42 before staging a partial recovery. This drop represented a notable pullback occurring swiftly after a rapid 50% price appreciation over the preceding 13 days.
Initial regulatory discussions during Crypto Week provided a catalyst for the preceding price surge. However, the momentum stalled as regulatory activity subsided, contributing to the subsequent sell-off and demand lull.
The cooling trend affected the wider market, exemplified by Bitcoin experiencing its first exchange-traded fund (ETF) inflow reversal since early June. This shift added layers of complexity to overall market sentiment and liquidity dynamics.
XRP’s recent price trajectory underscored the characteristic market behavior of profit-taking and technical retracements often following periods of rapid and steep appreciation.