XRP Price Declines by 8% as U.S. Treasury Yields Spike
Ripple XRP price declined by about 8% in 24 hours to $1.50 on Thursday, underperforming a broader market pullback primarily driven by a derivatives-led selloff.
Traders said that over-leveraged long positions were liquidated, dragging XRP after it topped $1.62. A sharp liquidation imbalance slammed overheated buyers, with reports noting long positions on exchanges like Bitfinex were flushed.
According to crypto analysts, the forced selling in a market where top traders were heavily net-long created a feedback loop that accelerated the drop.
The token’s downward price move was exacerbated by leverage, not just organic selling. Top crypto analysts emphasised that high leverage increases volatility during XRP pullbacks.
Market sentiment was generally declining due to elevated U.S. Treasury yields and expectations of further Federal Reserve rate hikes. The entire crypto market cap fell 2.82%, driven by rising U.S. 10-year Treasury yields near 5% and hawkish signals from the Fed.
XRP’s drop was compounded by a technical rejection at its recent swing high of $1.65, a key resistance level. XRP underperformed Bitcoin’s 2.69% drop, indicating coin-specific selling pressure on top of macro weakness.
The immediate trigger is the liquidation cascade, but the path forward depends on holding key support. The September 29 XRPL Batch V1.1 hard fork is a near-term event that could shift sentiment.
The trend is bearish in the very short term but remains part of a larger weekly uptrend. A daily close back above the $1.54–$1.56 high-volume zone would signal buyer recovery.
The confluence of leveraged unwinding and macro fears drove a sharp correction. The key to a reversal is stabilising at current support.
The market anticipates dip buyers to restore the rally in the hope that exchange-traded funds (ETFs) will pick up. According to SoSoValue data, the total net inflow of XRP spot ETFs reached $18.0409 million yesterday.
The XRP spot ETF with the highest net inflow yesterday was Bitwise XRP ETF (XRP), which recorded a daily net inflow of $11.5387 million, bringing its cumulative historical net inflow to $649 million.
Second was Franklin XRP ETF (XRPZ), with a daily net inflow of $6.5022 million, and its cumulative historical net inflow now stands at $492 million.
As of this report, the total net asset value of XRP spot ETFs is $1.65 billion, with an XRP net asset ratio of 1.77%, and the total historical cumulative net inflow has reached $1.748 billion.
