XRP Price Crashes to Weekly Low as Crypto Sell-Off Intensifies
Introduction: XRP Retreats Amid Market-Wide Downturn
The price of XRP has declined for the third consecutive day, hitting a weekly low as the broader cryptocurrency market experiences intensified selling pressure. The digital asset, which had shown resilience earlier this year, has now retested the critical support level at $3, marking a 17% drop from its 2025 peak.
This downturn coincides with a wider crypto market correction, but technical analysts suggest that XRP’s current price action may be part of a larger bullish pattern—the cup-and-handle formation. Additionally, several fundamental catalysts, including rising ETF approval odds and strategic partnerships, could play a pivotal role in XRP’s potential recovery.
In this article, we analyze:
- The ongoing cup-and-handle pattern and its implications.
- Key fundamental catalysts supporting XRP’s long-term outlook.
- How recent regulatory developments and institutional interest may influence XRP’s trajectory.
XRP Forms a Cup-and-Handle Pattern: A Bullish Continuation Signal?
Understanding the Cup-and-Handle Formation
The cup-and-handle (C&H) pattern is a rare but historically reliable bullish continuation signal in technical analysis. It consists of two phases:
The Cup (January – July 18, 2025):
- XRP formed a rounded bottom, with the lowest point at $1.6238 in April before rising to $3.3863.
- This phase represents accumulation and gradual upward momentum.
The Handle (Current Phase):
- The handle typically involves a short-term pullback or consolidation before a breakout.
- XRP is now in this phase, with prices retracing toward key support levels.
Price Target and Historical Context
If the pattern completes successfully, analysts estimate a breakout target by measuring the depth of the cup and projecting it upward:
- Cup Depth: $3.3863 (top) – $1.6238 (bottom) = $1.7625
- Projected Target: $3.3863 + $1.7625 = $5.1488 (~70% upside)
Historically, similar patterns in Bitcoin and Ethereum have preceded major rallies, suggesting that XRP could follow suit if market conditions improve.
Key Catalysts That Could Drive XRP’s Recovery
1. Rising Odds of an XRP Spot ETF Approval
Polymarket data indicates an over 80% probability that an XRP spot ETF will be approved by 2025. This follows the successful launches of Bitcoin (IBIT) and Ethereum (ETHA) ETFs by BlackRock, which now hold $86 billion and $10 billion in assets, respectively.
Existing derivatives-based XRP ETFs have also seen strong inflows:
- Ultra XRP ETF: Gained $100 million within a week of launch.
- Teucrium XXRP Fund: Holds over $430 million in assets under management (AUM).
If BlackRock or another major asset manager files for an XRP spot ETF, it could significantly boost institutional demand.
2. Regulatory Clarity & Stablecoin Growth Post-GENIUS Act
The recently passed GENIUS Act, which regulates stablecoins in the U.S., has benefited Ripple’s stablecoin (Ripple USD), which now holds over $550 million in assets. This positions Ripple as a growing player in the stablecoin sector alongside Tether (USDT) and USD Coin (USDC).
Industry experts suggest that more companies may explore launching their own stablecoins following this regulatory clarity:
"With the signing of the GENIUS Act, we’re seeing more consumer companies, retailers, platforms, and tech firms explore whether they need their own stablecoin."
— Jack McDonald (@JackMcDonald) July 22, 2025
3. Strategic Partnerships Post-SEC Lawsuit Resolution
Since settling its legal battle with the SEC, Ripple Labs has aggressively expanded its partnerships:
- Collaboration with Ctrl Alt & Dubai Land Department.
- Integration with Bank of New York Mellon (BNY Mellon) for cross-border payments.
- Partnership with OpenPayd to enhance fiat-to-crypto transactions.
These developments strengthen Ripple’s utility in global payments and could drive long-term adoption of XRP.
Broader Market Impact & What to Watch Next
Comparing XRP’s Performance to Major Cryptos
While Bitcoin and Ethereum have seen corrections as well, their declines have been less severe than XRP’s recent drop:
- BTC: Down ~12% from yearly highs.
- ETH: Down ~15% from peak levels.
- XRP: Down ~17% from its 2025 high.
This suggests that altcoins like XRP are experiencing sharper pullbacks amid risk-off sentiment but could rebound faster if ETF speculation grows.
What Crypto Investors Should Monitor
- ETF Filings: Any official application for an XRP spot ETF by BlackRock or other firms could trigger a rally.
- Market Sentiment: If Bitcoin stabilizes above key support levels ($60K–$65K), altcoins like XRP may recover faster.
- Regulatory Updates: Further clarity on stablecoin regulations could benefit Ripple USD adoption.
- Technical Breakout: A confirmed breakout above $3.40 would validate the cup-and-handle pattern’s bullish signal.
Conclusion: Short-Term Pain, Long-Term Potential?
XRP’s recent decline aligns with both broader market trends and its ongoing technical pattern formation—a potential precursor to a major upward move if historical precedents hold true. While short-term volatility persists due to macroeconomic uncertainty and crypto sell-offs, fundamental factors such as ETF speculation, regulatory progress, and institutional adoption provide strong tailwinds for Ripple’s native token.
Investors should watch for confirmation of the cup-and-handle breakout alongside developments in ETF approvals and institutional inflows into existing XRP-based funds. If these catalysts materialize, XRP could be poised for a significant rebound in the coming months—potentially outperforming major cryptocurrencies in the next bull cycle.