XRP News Today: Why Is XRP Down Today? The Reason Behind the XRP Crash

XRP is trading around $1.35 today, down nearly 6% over the past seven days. Anyone checking XRP price today on a screener full of red numbers might think this is just another altcoin bleeding out. But there's more going on under the surface than a simple sell-off.

This XRP price prediction breaks down the escrow news, the ETF inflows, and the chart setup that traders are watching this week.

Why Is XRP Going Down Right Now?

XRP price has dropped about 2.53% to $1.35 at press time. The bigger XRP news story, though, is not really about XRP at all.

Bitcoin has fallen below $78,000 as tensions between the United States and Iran escalate. That kind of macro fear tends to drag the whole crypto market down with it, XRP included.

Crypto lawyer Bill Morgan pushed back on a common theory floating around social media. He said XRP has been falling in line with Bitcoin and general market mood, not because of Ripple's own token movements.

Since peaking near $1.70 on August 19, XRP price has pulled back a cumulative 21%. That's a sharp move, but it's not out of character for how XRP price today tends to behave during broader risk-off periods.

Ripple Locks 1 Billion XRP Back Into Escrow

Ripple just re-locked 700 million XRP into escrow after its scheduled monthly release of 1 billion tokens. Two transactions, worth 500 million and 200 million XRP, went back into escrow following the release.

Together, those two batches were worth close to $952 million based on Whale Alert's tracking. A separate wallet tracker showed the full breakdown of the 1 billion XRP release:

This is a routine process Ripple has followed for years. Most of the released supply typically goes right back into escrow rather than hitting exchanges, which is why Morgan and others argue it isn't the real driver behind the current dip.

XRP ETF Inflows Are Still Positive

Not everything in the XRP news cycle this week is bearish. The XRP ETF saw a strong start to September, pulling in $14.38 million in net inflow on the first day of the month alone.

Looking at the last eleven days, XRP ETF inflows have added up to roughly $170.30 million, and the streak has stayed consistent rather than choppy.

The monthly trend backs that up. August brought in $159.18 million, July added $27.29 million, and June saw $59.46 million. March was the outlier, with a net outflow of $31.16 million, but every other month since has stayed in the green.

Cumulative net inflow into the XRP ETF now sits around $1.68 billion, with total net assets near $1.44 billion. That's a meaningful signal that institutional demand hasn't dried up even while the spot price slides.

XRP Derivatives Data: Long Positions Under Pressure

The futures market is telling a mixed story. Trading volume over 24 hours is up 15.69% to $3.86 billion, but open interest has slipped 4.15% to $3.05 billion. That gap suggests some traders are closing positions even as activity picks up.

Spot volume adds another $783.02 million to the picture, while XRP's market cap sits at $84.38 billion against a circulating supply of 62.74 billion tokens out of a 100 billion max supply.

Options activity is heating up too. Options volume climbed 13.35% to $1.74 million, and options open interest rose 1.55% to $78.41 million, a smaller but growing corner of the derivatives market.

Long/short ratios are still tilted heavily toward longs. Binance's XRP/USDT ratio sits at 2.47, OKX shows 2.62, and Binance top traders show ratios above 2.45. In plain terms, more traders are betting on a bounce than a further drop.

That optimism has come at a cost. Liquidations over the past 24 hours hit $9.20 million, with $8.30 million of that coming from long positions versus just $897,560 in shorts.

Long traders have absorbed most of the recent pain, and the 1-hour liquidation snapshot shows the same lopsided pattern, with $24.91 thousand in long liquidations and none on the short side.

XRP Price Prediction: What the Chart Shows

Here's where the technical setup gets interesting. XRP price is compressing between rising support around $1.30 to $1.35 and a descending resistance trendline coming down from the $1.55 to $1.60 rejection zone in late August.

That's a classic tightening pattern. When support keeps rising and resistance keeps falling, a breakout in either direction tends to follow.

The daily chart also shows why traders are paying attention. XRP already pulled off a similar move in mid-August, jumping about 55.68% off the $1.00 support zone before topping out near $1.70. The current setup looks like a smaller version of that same pattern.

XRP is trading above its 20-day and 50-day EMAs, currently near $1.31 and $1.22, but it remains below the longer-term 100-day and 200-day EMAs, which are still sloping down from higher levels.

The daily RSI sits around 58, cooling off from a recent high near 72, which suggests the sharp momentum from late August has eased without turning outright bearish.

Bullish scenario: If XRP holds the $1.30–$1.35 zone and breaks above the descending trendline, the first target sits around $1.55–$1.70, with a further move toward $2.00–$2.10 possible after that.

Bearish invalidation: A sustained break below roughly $1.30 would weaken this setup and could open the door to lower support levels.

The measured move on the chart points toward the $2.10 area, which would be roughly 55% above the current $1.35 level. That's a target, not a guarantee, and it depends heavily on whether XRP can defend its current support zone.

What Could Move XRP Price This Week

A few real catalysts are lined up. The U.S. non-farm payrolls report drops this Friday, and it could shape XRP price prediction sentiment across the board.

Market consensus expects around 58,000 new jobs and 4.1% unemployment. A soft landing would likely keep crypto range-bound, with XRP trading somewhere between $1.40 and $1.70.

Weaker-than-expected jobs data could fuel bets on Fed rate cuts, which historically help risk assets. In that case, Bitcoin pushing past $83,000 resistance could give XRP room to test $1.70 and beyond.

There's also a political date to watch. The Senate is expected to hold a cloture vote on the CLARITY Act around September 15. That vote alone wouldn't make the bill law, but it would move it toward full debate, and markets are watching it closely.

Disclaimer

This article is for informational purposes only and does not constitute financial, investment, or trading advice. Cryptocurrency markets are highly volatile, and prices can move sharply in either direction. Always do your own research before making investment decisions. Past performance and technical chart patterns are not guarantees of future results.