XRP Drops 7% Amid Weekend Crypto Sell-Off

The sudden downturn in the crypto markets over the weekend saw XRP, along with Dogecoin and Cardano’s ADA, experiencing significant losses. The focus keyword, XRP, saw a decline of over 7% as broader market sentiment soured following a volatile week of gains.

Investor confidence took a hit on Friday when Bitcoin dropped sharply from a daily high of $111,200 to just above $107,000. The plunge was triggered by geopolitical developments, particularly former U.S. President Donald Trump threatening a 50% tariff against the European Union, signaling renewed trade tensions. This move ignited fears of economic instability, impacting risk assets — including digital currencies like XRP.

The overall market capitalization dropped by 5%, while the CoinDesk 20 (CD20) index — which tracks some of the largest and most liquid crypto assets — slid by 2.2%. Many traders chose to cash out gains from the previous week as market volatility surged, with XRP among the altcoins hit hardest during this pullback.

Just days prior, Bitcoin had hit record highs topping $111,500, buoyed by positive developments such as institutional investments, stablecoin regulation advances, and inflows into exchange-traded funds (ETFs). Yet, while these developments were enough to drive Bitcoin’s momentum, they provided little short-term support for altcoins like XRP.

“Bitcoin hitting new highs generally draws altcoins higher with it,” explained Haiyang Ru, co-CEO of HashKey Group, via a message on Telegram. “However, increased volatility in BTC tends to push traders toward safer assets like regulated stablecoins — especially with emerging regulatory frameworks in the U.S. and Hong Kong simplifying the transition.”

Sentiment indicators continue to show signs of exhaustion throughout the market. According to Alex Kuptsikevich, chief analyst at FxPro, investor sentiment in the crypto space has recently matched levels last seen in January. At that time, both Bitcoin and Ethereum faced strong resistance points. Kuptsikevich commented that the recent Bitcoin rally is grounded in real macroeconomic drivers and not merely speculative momentum — but that hasn’t prevented the market from entering a correction.

Ethereum, a longtime bellwether for altcoins, is currently struggling to breach its 200-day moving average at around $2,650. Meanwhile, previously surging altcoins such as HYPE and EIGEN are witnessing sharp reversals following impressive double-digit rallies. The weakness in these tokens echoes broader market concerns and adds to the risk-off sentiment impacting XRP’s trajectory.

Analysts caution that unless Bitcoin can find and maintain a stable support level, further downside is likely across the altcoin spectrum. For XRP holders, the situation underscores how quickly optimism can fade under conditions of reduced liquidity and rising global uncertainty.

Related: Expert Advice: Sell XRP If You’re Confused

The crypto market’s weekend dip highlights just how fragile bullish trends can be, especially in environments lacking sustained buying pressure. For XRP and similar assets, the short-term outlook remains clouded by macro concerns, profit-taking activity, and technical barriers.