XRP Sentiment Hits 4-Month Low: Can Garlinghouse’s ‘North Star’ Hold Above $1?

Market Sell-Off Triggers Heavy Liquidations as XRP Breaches Key Support

A sudden shift in broader cryptocurrency market sentiment has pushed XRP into a sharp downward trajectory. Analyzing the 4-hour chart reveals a steep drop from $1.32 down to the $1.15 range. This decline breached the pivotal support threshold at $1.24, an event that exacerbated market volatility and triggered cascading liquidations across major exchanges.

According to data from CoinGlass, the breach below $1.24 wiped out more than $10.23 million in long liquidations and stop-loss orders. Concurrently, derivative activity saw a substantial contraction, with XRP’s Open Interest (OI) plunging from $3.78 billion to $2.77 billion. Compounding these technical challenges are stagnant XRP ETF net inflows; this month registered only a single day of outflows, with the remainder of the period marked by stagnant, inactive flows that failed to counteract the prevailing selling pressure.

Brad Garlinghouse Reaffirms Long-Term Commitment Amid Market Shift

Despite the steep descent to $1.15, signs of potential price stabilization have begun to emerge. Trading metrics indicate that buying volume has started to outpace selling activity, signaling that the initial bout of aggressive distribution could be losing momentum. Historically, the $1.15 mark served as the final lower high before a prior structural shift turned the token bullish, suggesting the current price action may represent a technical retest of that breakout zone. However, if buyers fail to hold $1.15, the asset risks sliding toward its next major demand zone at $0.98.

Investor sentiment also found fundamental reassurance through statements from Ripple leadership. During the recent Ripple Swell event, Ripple CEO Brad Garlinghouse repeatedly highlighted XRP and the XRP Ledger (XRPL) as the company’s “North Star,” defining it as the central purpose and overarching guiding principle behind Ripple’s strategic operations.

Garlinghouse addressed community concerns regarding whether the imminent release of the Ripple USD (RLUSD) stablecoin would divert resources and strategic focus away from the chain’s native token. The chief executive clarified that RLUSD is designed strictly to compete against rival market stablecoins rather than supplant the functional role and ecosystem relevance of XRP.

Why This Matters

The swift drop in XRP’s valuation underscores how rapidly leveraged open interest can evaporate during wider market corrections. By plunging social sentiment to a four-month low and resetting derivatives exposure by over $1 billion, the market has undergone a significant leverage flush. At the same time, clear messaging from leadership regarding the coexistence of RLUSD and XRPL provides long-term clarity, reassuring participants that incoming institutional stablecoin infrastructure is intended to operate alongside the token rather than replace it.

Frequently Asked Questions

What led to the sudden decline in XRP’s price?

XRP’s decline from $1.32 to $1.15 was precipitated by a broader market sell-off, a breakdown below the $1.24 support line, over $10.23 million in long liquidations, a drop in Open Interest from $3.78 billion to $2.77 billion, and stagnant net inflows across XRP exchange-traded funds.

What key price levels should traders watch next?

The immediate level to monitor is $1.15, which previously functioned as a market structure pivot. If XRP maintains its position above $1.15 amid rising buy volumes, a structure retest may form; failing to hold this level exposes the asset to a potential drop toward the $0.98 demand zone.

Will the Ripple USD (RLUSD) stablecoin replace XRP?

No. Ripple CEO Brad Garlinghouse confirmed that XRP and the XRP Ledger remain Ripple’s “North Star,” affirming that RLUSD is positioned to compete against other fiat-backed stablecoins in the market rather than diminish the focus on XRP.