In a dramatic turn for the cryptocurrency market, XRP—the digital asset closely tied to Ripple—suffered a steep 6.5% price drop on November 3, 2025, erasing a staggering $1.5 billion in market value within just 24 hours. The token, which had briefly touched $2.60 last week, was trading near $2.36 during the sell-off, according to The Economic Times. The sudden correction sent ripples (no pun intended) through the broader crypto landscape, with Bitcoin hovering around $67,800 and Ethereum near $3,130, both experiencing their own declines. Sui (SUI) took a particularly hard hit, tumbling nearly 8% within the same period.
So, what triggered this abrupt downturn? Analysts point to a confluence of technical weakness and macroeconomic jitters. The most immediate spark came from the Federal Reserve’s latest rate decision. While the Fed did cut rates as widely expected, Chair Jerome Powell’s cautious tone quickly dampened enthusiasm. Powell warned that another rate cut in December was far from guaranteed—a remark that rattled risk markets across the board. Before his comments, the CME FedWatch Tool showed a robust 91.1% probability of a further cut; after Powell spoke, those odds plummeted to just 67.1%. This shift ignited a risk-off mood, with cryptocurrencies leading the retreat.
The carnage wasn’t limited to XRP. According to data from Coinglass, as reported by Odaily Planet Daily, over $654 million in positions were liquidated across the entire crypto network in the four hours leading up to 16:06 UTC on November 3. A whopping $625 million of these liquidations were long positions, with only $29 million in shorts getting wiped out. The overwhelming liquidation of longs contributed to the sharp and volatile price moves, as traders rushed to exit losing bets amid the uncertainty.
For XRP specifically, the correction has analysts eyeing several critical support levels. The first line of defense sits at $2.40, a level that has already been tested twice in recent weeks. Should this support fail, downside targets loom at $2.25, $2.15, and the psychologically significant $2.00 mark. Some technical analysts even warn of a potential slide toward $2.10 or as low as $1.90 if selling accelerates. The technical picture is hardly rosy: XRP is now trading below its 50-day exponential moving average ($2.64), the 100-day EMA ($2.72), and the 200-day EMA ($2.60). The Relative Strength Index (RSI) has also dipped below its 14-period moving average, a classic sign of mounting bearish momentum. The MACD indicator is teetering on the edge of a sell signal, compounding traders’ nerves.
Yet, not everyone is ready to throw in the towel. Some market participants see the current price action as a potential “buy-the-dip” opportunity, provided that $2.40 holds as support. If XRP can stage a bounce from this level, a short-term recovery back toward the $2.60–$2.70 zone is possible, especially if Bitcoin regains its footing and broader market sentiment improves. This cautious optimism is echoed by long-term bulls who view the recent drop as a healthy correction rather than a harbinger of doom. Technical charts still show XRP trading above its 50-day moving average, suggesting that underlying structural strength remains—unless, of course, the token breaks decisively below $2.20.
Broader sentiment, however, remains fragile. The Crypto Fear & Greed Index—a popular gauge of market mood—fell to 36 on November 3, a sharp drop from last month’s high of 62. This shift reflects a significant cooling of retail enthusiasm. XRP’s open interest, a measure of active derivatives positions, also slumped from $9.09 billion in October to $4.33 billion in early November, signaling that traders are closing out longs and moving to shorts. The OI-weighted funding rate has dropped to 0.0010%, further indicating that bullish bets are being unwound.
Adding to the uncertainty is the ongoing delay in regulatory developments. Optimism had been building around the potential approval of U.S.-listed spot XRP exchange-traded funds (ETFs), which many believed could unlock a wave of institutional demand. The REX-Osprey XRP ETF (XRPR) currently manages over $100 million in assets and is the only fund offering direct spot exposure to XRP. Several major asset managers—including CoinShares, 21Shares, and WisdomTree—are still waiting on the Securities and Exchange Commission (SEC) to greenlight their own spot XRP ETFs. Yet, as of November 3, the U.S. government shutdown had entered its 34th day, stalling the review process and leaving the fate of these ETFs in limbo. Analysts suggest that once the logjam clears, multiple ETF approvals could arrive in quick succession, potentially reviving XRP’s fortunes in regulated markets.
Despite the current gloom, Ripple’s long-term fundamentals remain compelling to many observers. The company continues to expand its cross-border payment solutions through RippleNet, leveraging XRP as a bridge currency for international settlements. Ripple’s latest statement on cross-border settlement growth in Asia, however, failed to lift short-term sentiment, as traders appear to be shifting their focus to high-volatility tokens like Solana and Dogecoin. Still, many analysts expect a recovery later in 2025, especially if ETF approvals materialize or institutional flows pick up.
It’s worth noting that XRP’s price has been anything but stable in recent months. The token has fluctuated between roughly $2.30 and $3.04, after reaching a high near $3.66 back in July 2025. This volatility is par for the course in the crypto world, but the sheer scale of the recent liquidations—over $650 million in just four hours—underscores the risks faced by leveraged traders and the speed with which market sentiment can shift.
For now, all eyes remain on the key support levels and the broader regulatory environment. If XRP can stabilize above $2.40 and institutional interest returns, a rebound could be in the cards. But if support falters and macroeconomic headwinds persist, the token may be headed for a test of the $2.00 mark—or lower. One thing is certain: the next few sessions will be crucial in determining whether this is merely a painful correction or the start of a more prolonged downturn for XRP and the broader crypto market.
With so many factors at play—from Federal Reserve policy to ETF approvals and government shutdowns—investors are bracing for more volatility ahead. Whether XRP can weather the storm and stage a comeback remains to be seen, but as always in crypto, fortunes can change in the blink of an eye.
