XRP Leads Crypto Market Pullback With Nearly 7% Drop

XRP led a broader market pullback on August 26, sliding roughly 6.6% over 24 hours to trade near $1.37. The decline made it the weakest of the top‑10 cryptocurrencies.

What Triggered the Reversal

From a cycle low of $0.9877 on August 17, XRP surged to a three‑month high of $1.69 by August 22 – a gain of nearly 70%. This outpaced Bitcoin’s 23.6% and Ethereum’s 28.1% over the same period. The rapid rise pushed momentum indicators into overbought territory, with the daily RSI reaching 88.

Technical Outlook

Analyst ChartNerdTA described the rally as a genuine breakout that created a short‑seller liquidity trap. The subsequent unwind has pulled the price about 18% from the $1.70 peak into the $1.40‑$1.38 range.

The key level to watch is $1.40. A daily close below this point could expose support zones between $1.30 and $1.20, while a break toward $1.00 would signal a deeper correction. Conversely, a rebound above the weekly 50‑day EMA near $1.54 could restore short‑term bullish momentum and reopen a path toward $1.70 and higher.

Broader Market Context

Bitcoin briefly cleared $80,000 before retreating toward $78,000, pulling altcoins lower as traders awaited core PCE inflation data, NVIDIA earnings, and the upcoming Jackson Hole event.

Additional Market Signals

• XRP‑linked ETFs recorded six consecutive days of net inflows, indicating institutional interest despite the price drop.
• CryptoQuant data showed long liquidations of $4.66 million, up 31.82% in a single day, suggesting continued selling pressure.

Outlook

The next sessions will likely determine whether the move represents a healthy correction or the start of a deeper bearish phase, hinging on the ability of bulls to defend the $1.40 level.