Altcoin sell-off hits XRP: Analysts say litigation is no longer a key factor

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Despite weekly optimism, XRP fell below $3 again as the tokens lag behind the broader market trends, frustrating its community. Currently, it is trading at nearly $2.90, down more than 4% in the past 24 hours and has a market cap of about $173 billion.

Despite the long history of the US XRP ETF and Ripple has strengthened ties with Spain’s BBVA bank, the token failed to maintain its upward momentum.

Analysts now believe that XRP’s slow performance is no longer blamed on the Securities and Exchange Commission (SEC) lawsuit, which has long been regarded as a key obstacle to growth. As the case is resolved, attention has shifted to deeper market dynamics.

Profit, liquidation and market sentiment

XRP’s ETF debut set a record $37 million, but it also sparked a response to the classic “for-sale news.” Many institutional investors withdraw from positions, causing huge sales pressure.

XRP traders have faced nearly $79 million in liquidation over the past day, and for a long time, XRP traders have faced nearly $79 million in liquidation. This wave forces sales to lower prices and destroys the confidence of retail investors.

Meanwhile, the broader cryptocurrency market lost 4% of its value, and billions of dollars in altcoins capitalization wiped out billions of dollars. Ethereum (ETH) and other major assets also fell sharply, further dragging XRP.

XRP's price records important losses on the daily chart. Source: XRPUSD on Tradingview

Can XRP avoid a sharp drop?

XRP is now competing for $2.80 support, with traders warning that breaks may expose tokens to the $2.50-$2.60 area. On the other hand, the Bulls need to regain the $3.10-$3.20 range to rebuild momentum and restore hope to test the all-time high of $3.65.

Market sentiment is still mixed. Some commentators, such as analyst Barric, believe XRP follows a historical pattern, and even suggests that a possible $300 target by 2026 may also emerge.

Others remain skeptical, pointing to sales pressure on altcoin ETFs and stricter regulatory compliance requirements. Currently, XRP holders are facing a key test: defending current levels or deeper losses as the altcoin market accelerates.

Cover image from chatgpt, XRPUSD chart from TradingView

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