XRP Falls to $1.26 as Investors React to Ripple Payments Crash
Fuelled by a shift in fundamentals, Ripple (XRP) fell to $1.26, underperforming a slightly weaker broader market, primarily driven by a flash crash and weak on-chain activity signalling reduced network utility.
Traders reported that a flash crash to $1.26 and a sharp 72% drop in XRP Ledger payment volume raised concerns over near-term utility and triggered selling.
A flash crash on October 17 drove XRP to a monthly low of $1.26, eroding technical support. Concurrently, XRP Ledger payment volume plunged 72.3% to 119.5 million XRP, far below its 30-day average.
Crypto analysts said this sharp decline in a core utility metric signalled weak network demand, exacerbating the sell-off. The price drop was driven by fundamental concerns about the token’s immediate utility, not just by technical selling.
Futures open interest for XRP fell 1.73%, and funding rates turned negative, indicating that leveraged longs were closing positions, according to a market report.
Separately, spot XRP ETFs ended a 13-week inflow streak with $1.84 million in net withdrawals/
Crypto analysts said these flows show a reduction in speculative bullish bets and a pause in institutional accumulation, contributing to downside pressure.
XRP is testing critical support at the $1.26 flash-crash level. The 50-day and 200-day Simple Moving Averages near $1.34–$1.38 now act as strong overhead resistance.
A key near-term trigger is Ripple’s Swell conference on October 28, which could provide updates on the ecosystem. The trend is bearish below $1.34. Holding $1.26 is crucial to avoid a deeper decline toward $1.15.
A daily close above $1.34 would signal a potential reversal, or a break below $1.26 would confirm continued weakness. The combination of a technical breakdown and weak on-chain fundamentals has shifted momentum to the downside. Ripple’s CEO Sees XRP Hitting $10trn Market Cap
