Why is XRP falling? XRP price fell by 5%, Bitcoin is testing $110,000

As of August 26, 2025, Gate platform data shows that the XRP price is temporarily reported at $2.91, down 2.16% in the last 24 hours. This wave of decline is the result of a combination of technical adjustments, regulatory uncertainties, and market fund diversion.

Today's Trend: Technically Pressured, XRP Enters Downward Channel in Short Term

The XRP price was unable to continue its upward trend today and instead showed a pullback. Looking at its recent performance, the price has encountered resistance multiple times in the range of 3.05 to 3.10 dollars, forming a clear short-term descending channel.

The EMA cluster (20/50/100) on the 4-hour chart has shown a bearish arrangement, with prices being suppressed below $3.00. The 30-minute RSI once fell close to 32, nearing the oversold area, and while a technical rebound may occur, the overall momentum remains weak.

The key support level is around $2.90. If it falls below that, the next important support level is at $2.66. In terms of trading volume, the market sentiment is cautious, and investors are waiting for more clear directional signals.

Reasons for the fall: Three factors put pressure on XRP prices

Regulatory uncertainty continues

The U.S. Securities and Exchange Commission (SEC) has postponed the resolutions for multiple XRP spot ETF applications to mid to late October. The new deadlines for these decisions are concentrated between October 18 and 23.

Despite the partial resolution of Ripple's long-term legal battle with the SEC (the SEC acknowledges that XRP does not constitute a security when traded on the secondary market), the regulatory body's cautious attitude towards ETFs still affects short-term market confidence.

the capital diversion caused by Bitcoin volatility

Bitcoin has recently experienced significant price fluctuations, briefly nearing 115,000 USD, but analysts predict it may first retrace to the 100,000 to 104,000 USD range before attempting to reach the 140,000 to 148,000 USD level.

This expectation has caused some funds to temporarily flow back from altcoins (including XRP) to Bitcoin, intensifying the price pressure on XRP.

Competitive token diversion market attention

The market has seen the emergence of some new tokens, such as Layer Brett (LBRETT) and Little Pepe (LILPEPE), attracting a large amount of speculative funds.

These tokens have diverted funds that could have potentially flowed into XRP in a short period of time due to high staking rewards (such as the 20,000% APY claimed by LBRETT) and the spread of meme culture.

Project Updates: Ripple's Progress and Potential Benefits

Despite the short-term pressure on prices, Ripple's fundamentals remain solid, with numerous positive developments.

acquisition and stablecoin layout

Ripple has recently completed a $200 million acquisition of Rail, deepening its layout in the payment infrastructure and stablecoin fields. Its upcoming RLUSD stablecoin has been approved by the New York Department of Financial Services (NYDFS) and will be deployed on both the XRP Ledger and Ethereum.

The destruction mechanism of RLUSD may indirectly reduce the circulation of XRP, which is favorable for its long-term price.

bank license application

Ripple's application for a national bank charter submitted to the Office of the Comptroller of the Currency (OCC) is expected to be decided in late October. If successful in obtaining this charter, Ripple will transform into a federally regulated trust bank and gain a master account with the Federal Reserve, significantly enhancing its legal status and operational capabilities within the U.S. financial system.

Future Prediction: Short-term fluctuations are inevitable, but long-term prospects remain promising.

Short-term outlook (1-2 months)

The short-term price trend of XRP largely depends on the key support area between 2.90 dollars and 2.93 dollars. If it can hold firm, the price is expected to test the resistance levels of 3.05 dollars or even 3.20 dollars again.

However, the period from mid to late October will be an important time window, as the SEC's decision on the ETF and the OCC's ruling on bank licenses could become catalysts for significant price fluctuations.

Overall forecast for 2025

Multiple institutions are optimistic about the price of XRP in 2025: Gate.com predicts an average annual price of around 3.04 USD, with a possible peak of 4.44 USD; CoinCodex estimates an average price of 3.51 USD, with a high point looking at 4.56 USD; some analysts even believe that if bullish catalysts emerge, XRP could challenge the range of 5 USD to 10 USD.

Long-term vision (until 2030)

Analysts at Gate.com predict that by 2030, the average price of XRP is expected to reach $5.32, representing a potential increase of 75% from the current price. This prediction is based on the assumption of a significant increase in the adoption rate of RippleNet in the global payment network.

The market has high hopes for regulatory decisions in October, with multiple XRP spot ETF applications and Ripple's banking license decision potentially serving as strong catalysts. If the positive outlook materializes, XRP is expected to reverse its short-term downturn and attempt to surge towards the $3.5 or even $4 region.

However, if Bitcoin significantly falls to the level of 100,000 USD, or regulatory decisions are not as expected, XRP may face further retracement risks. The short-term support level to watch is 2.66 USD, while the key resistance level remains at 3.20 USD.