XRP Faces Potential Correction: Price Drop Imminent?

by Crypto Hobby

Updated July 26, 2025

XRP coin falling against a blurred financial chart. — A XRP coin in front of a trading chart

XRP has experienced a significant double-digit dip, losing over 10% of its value and currently trading around the $3.10 mark. This downturn follows a period of strong gains, leading to concerns among investors that the cryptocurrency may have peaked after reaching an all-time high of $3.65 last week.

The current market sentiment suggests a potential correction phase, with traders booking profits and initiating sell-offs.

XRP Faces Potential Correction Amidst Profit-Taking

XRP's recent price drop has put it at a critical juncture.

Investors are wary that the token might be entering a correction phase, potentially erasing recent gains and returning to previous levels.

This sentiment is amplified by the fact that many traders are exiting their positions after realizing profits, contributing to the downward pressure.

Market Indicators Point to Broader Slump

Data from Coinglass indicates a spike in Ethereum sell orders, suggesting a potential price decline for ETH as well.

This broader market trend, where "the market may be facing selling pressure", could impact other leading cryptocurrencies, including XRP.

The possibility of a slump across the market raises concerns for XRP's short-term price trajectory.

Derivatives Market Activity and Future Outlook

Activity in the derivatives market shows that call strike options for XRP were previously set at $3 and $3.50. With the token having reached these targets, these options are now being sold off, further contributing to the correction phase.

While these options expire in September, many holders are cashing out their gains, adding to the selling pressure.

Key Takeaways:

XRP has seen a double-digit percentage drop in value.
Investors fear the token has peaked after reaching an all-time high.
Profit-taking and sell-offs are contributing to a potential correction.
Broader market trends suggest a possible slump for leading cryptocurrencies.
Derivatives market activity indicates selling pressure on XRP.

For those looking to invest, entering a position now is considered risky due to the ongoing correction. However, analysts suggest that accumulating XRP below the $2.70 mark could be advisable once the price bottoms out.

The potential for another rally exists, especially if institutional clients continue to show bullish sentiment towards Bitcoin, which could drive other cryptocurrencies, including XRP, to new yearly highs.