#Xrp🔥🔥

Why has the price of XRP dropped today?

Summary

XRP fell by 6.9% in the last 24 hours, underperforming the overall cryptocurrency market (-5.1%). Key factors include aggressive liquidations of derivatives, bearish technical factors, and a wave of macroeconomic selling driven by Japan that amplifies the risk-off tone of cryptocurrencies.

Widespread liquidation across the market: cryptocurrencies lost $140 billion while yields on Japanese bonds spooked risk assets.

Technical breakdown: XRP fell below the $2.10 support and is now trading 22.9% below its 200-day simple moving average (SMA).

Derivatives liquidation: long positions worth $535 million were liquidated and open interest in XRP futures fell by 4.3%.

1. Macroeconomic shockwaves (bearish impact)

Summary:

The yield on 2-year Japanese government bonds exceeded 1% for the first time since 2008 (December 1, 2025), indicating expectations of rate hikes by the Bank of Japan (BOJ). This triggered a rotation of capital from risk assets globally, with a total market capitalization drop of cryptocurrencies by 5.1%. XRP's 6.9% drop outpaced that of BTC (-5.3%) and ETH (-6%).

What this means:

XRP's high beta in cryptocurrency markets (1.2x volatility against BTC) amplified losses during the liquidity crisis. This measure also reversed the gains from November driven by ETFs, as traders discounted tighter global liquidity conditions (Finbold).

What to keep in mind:

BOJ monetary policy meeting on December 19: a rate hike could extend the risk-off momentum in cryptocurrencies.