XRP, The Third-Alarges Cryptocurrency by Market Capitalization, Fell 5% On August 18, 2025, Sliding Below The Key $ 3 Level for the First Time In Nearly Two Weeks. The Decline Mirrors A Broader Pullback in the Cryptocurrency Sector, with bitcoin and ethhereum Also Seeing Notable Drops. This Synchronized Retreat Highlights Several Underlying Factors Driving the Correction.
The Primary Cause is Heavy Profit-Taking Across Major Digital Assets. After Sharp Rally in July and Early August, Vast Majority of XRP Holders – Vaver 90%—Were Sitting on Significant Gains. This Setup Historically Leads Traders to Lock in Profits, Triggering A Wave of Selling That Can Quickly Snowball As Momentum Shifts. The Day’s Sell-Off Was Exacerbated by Unusually High Trading Volumes, amphying Price Pressure and Panic Selling Among Retail Investors.
WHALA AND INSIDER SELLING Also contributed to the rapid decline. Large Holders, Including Ripple Co-Founder Chris Larsen, Reported Moved Substantial Amounts of XRP Onto Exchange, Spurring Fears Among Smaller Traders and Intelligeing The Sell-Off. Such Insider Activity Offen Leads to A Chain Reaction As Retail Investors Rush To Follow Suit.
Further, XRP Failed to Break Through Key Technical Resistance at $ 3.05 and Revorded Sharply After Reaching A Local High Near $ 3.17. THE INABILY TO SUBSTAIN UPWARD MOMENTUM PROMPTED TRADERS TO EXIT POSTIONS, INCREASING Short-TERM VOLATILITY.
Bitcoin Shed Value to $ 115,000-With Nearly $ 500 Million In Sector-Wide Liquidations-While Ethereum and Other Altcoins Also Retlated, Creating A Climate of Risk Redution.
XRP’s Correction Reflects Not Only Sector-Wide Profit-Taking But Also Market sentiment BroaderTechnical Resistance, and notable Insider Moves. As A Result, XRP Is Now Testing New Support Levels after period of Overheated Bullishness, With Analysts Watching for Stabiling Signals Before to Possible Recovery.
