XRP Is Down – What’s Driving the Drop?

Key Points:

• 24h volume spiked to ~$8.95B amid institutional profit‑taking.
• Analysts flag overvaluation risks, fueling cautious sentiment.
• Price slipped below 20‑DMA; RSI turned bearish.

As of August 12, 2025, the token’s price stood at $3.15, down 3.7% over the last 24 hours. The intraday low touched $3.12, with a high near $3.32. The chart shows a steady drop starting from late August 11, 2025, underscoring the current bearish momentum. This article examines the main reasons why is XRP dropping.

Surge in Selling Volume and Institutional Pressure

One factor explaining the XRP drop was a sharp increase in trading activity, with 24‑hour volume near $8.95 billion. Elevated flows coincided with legal headlines as the SEC and Ripple moved to end their appeals, prompting some institutions to de‑risk and lock in gains after XRP’s recent run‑up. 

A catalyst for this wave was the filing acknowledging dismissal of appeals in the Ripple-SEC case, which removed a key overhang but also triggered profit‑taking as positioning reset. This dynamic deepened the downward move and created a brief chain reaction of sell orders.

Concerns Over Valuation

Another reason explaining why did XRP drop came from growing concerns that XRP might be significantly overvalued at current levels. Analysts caution that the token’s market capitalization does not align with its current adoption metrics. This sentiment has prompted some investors to cash out, adding further pressure to the price.

Technical Breakdown and Negative Indicators

A further key factor behind why did XRP go down was technical weakness on the charts. According to CoinMarketCap and major exchanges, XRP slipped below its 20‑day moving average, with RSI confirming bearish momentum. The loss of short‑term support around $3.15 opened the way for a test of the $3.05–$2.95 range.

For many investors, this became a signal to sell further, as the risk of moving to new lows increased and market sentiment turned even more pessimistic.

If the current pressure persists, there is a risk of further decline toward $2.95. A potential reversal will depend on changes in the macroeconomic backdrop and the emergence of sustained demand at key support levels.