XRP Price Crashes to Post-Election Lows as Institutional Losses Shake the Crypto Market
Ripple’s XRP price has crashed to levels not seen since the 2024 U.S. election, sliding below $1.40 in a broad market downturn, triggering heavy losses for institutional holders and traders alike. This drop unfolded as Bitcoin and other major cryptocurrencies tumbled amid heightened risk-off sentiment, rising exchange reserves, and forced liquidations, shaking confidence across the digital asset landscape.
This matters now because XRP has been one of the most watched altcoins globally — backed by real-world asset use cases and institutional interest — and its sustained decline has profound implications for broader crypto sentiment, leveraged traders, and regulated investment products such as XRP ETFs.
What Caused the XRP Crash and Broader Crypto Sell-Off
The fall in XRP’s price has been triggered by several overlapping market forces:
- Macro risk-off sentiment: As Bitcoin, Ethereum, and other cryptos declined, investor appetite for risk assets receded sharply, pushing XRP down harder than many peers.
- Rising exchange reserves: On-chain data shows XRP holders transferring tokens back to exchanges, a classic precursor to selling pressure that accelerates price declines.
- Leverage unwind and liquidations: Derivatives markets saw long positions forced out as prices sliced through key levels, amplifying downward momentum.
- Institutional stress: Major holders like Evernorth — once bullish on XRP’s potential as a treasury asset — are now sitting on hundreds of millions in unrealized losses.
These forces converged to push XRP to the lowest levels since the November 2024 U.S. election, a psychological support zone that had acted as a floor for traders.
Ripple’s Institutional Pain: Evernorth and Paper Losses
Evernorth, one of the largest institutional holders of XRP, has faced significant unrealized losses on its XRP treasury holdings. The firm initially positioned XRP as a cornerstone asset for institutional crypto exposure, but the recent sell-off has turned that narrative upside down, leaving it on the hook for more than $200 million to $400 million in paper losses depending on reported price points.
Such losses are emblematic of the broader sell-off’s impact on institutions that entered assets like XRP expecting macro tailwinds and sustained adoption momentum. The pain sharpens the contrast with other digital assets experiencing similar downturns and could affect future institutional allocations into crypto.
Technical Breakdown: Key Price Levels Broken
From a technical perspective, XRP has slipped below several short-term and long-standing support zones:
- The $1.50 psychological support, once a critical barrier, has failed, opening the door for deeper declines.
- The $1.25–$1.30 range, significant in trader memory from prior lows, is now the next battleground.
- Bears have gained control of both price action and funding rate metrics, increasing the likelihood of further downward pressure if key levels fail again.
This cascade of breakouts and breakdowns suggests a technical narrative dominated by volatility, with market structure increasingly tilted toward sellers.
Market Impact: What This Means for Traders and Investors
The massive drop in XRP price has rippled across the crypto ecosystem:
- Liquidations soared as traders on leverage were forced out of positions, compounding losses.
- ETF and fund flows shifted, with Bitcoin spot products seeing net outflows even as some XRP-linked products continue to attract cash, revealing a bifurcated sentiment among institutional allocators.
- Risk appetite is cratering, aligning with broader traditional market volatility and macro uncertainty.
For traders, this means risk management is paramount — particularly as XRP nears key psychological levels that could dictate the next directional move.
Long-Term View: Is Recovery Possible?
Despite the current downturn, there are reasons XRP could rebound over the long term:
- Real-world asset tokenization growth positions the XRP Ledger as a potential backbone for institutional finance into 2026.
- Institutional interest in regulated XRP products like ETFs still exists, albeit with mixed flow signals.
- If broader market sentiment stabilizes and macro headwinds ease, high-beta assets such as XRP may benefit from renewed capital flows.
However, these positive narratives operate on a longer horizon and may not provide instant relief for traders facing the current downtrend.
Why This Matters Now — Final Take
The plunge in XRP isn’t just another crypto price move — it’s a sentiment barometer for how risk assets behave under macro pressure, leverage unwinding, and forced selling. Because Ripple’s XRP once led the crypto recovery post-election, its current collapse resonates across traders, institutions, and long-term investors alike.
This period of volatility — driven by both technical breakdowns and broader market stress — underscores how quickly sentiment can shift in digital markets. For traders and investors watching for recovery signals, understanding these dynamics will be key to navigating what comes next.
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