The legal battle hanging from Limbo and the mystical $439 million XRP transfer by Ripple coincided with the brutal wave of long liquidation where traders were caught up in crossfire.
The turbulence began shortly after US District Judge Annalisa Torres rejected the proposed settlement between the Ripple Institute (XRP) and the SEC.
At about the same time, blockchain trackers discovered Ripple moving $5 billion worth of XRP into private wallets, just as leveraged traders were loading into bullish bets. These events surprised the market, causing a cascade of liquidation totaling $7.18 million, surpassing long shorts 10-1, according to Coinglass data.
The broader crypto sector showed signs of stabilization, but XRP’s biased positioning transformed into a 5.3% blood band due to overexposed traders, revealing little defense against Ripple’s own corporate moves or legal cores, revealing an overreliance of tokens on speculative optimism.
How Ripple’s corporate movements and legal struggles have driven the decline in XRP
The long $7.18 million liquidation event was the culmination of Ripple’s opaque financial management and increased pressure from unresolved legal battles.
Bitcoin (BTC) and Ethereum (ETH) have overcome wider market turbulence with relative stability, but XRP’s all-time high of $3.84 to 45.62% drop highlights a deeper problem.
This week’s 5.3% slide was hit hard because of the timing, although not extreme. Traders are now positioned for potential breakouts beyond $2.17 resistance.
Judge Annalisa Torres’ rejection of the SEC settlement proposed by Ripple reinforced the worst fears of the market. Without clarifying whether XRP will face tougher securities enforcement, institutional players are hesitant to commit. The Limbo of the regulations has held its XRP range between $2.00 and $2.60 since March despite the token’s CME futures list and the whispers of potential ETFs.
For traders, the message is clear. Until the SEC case is over, XRP’s upside will be concluded with skepticism. Adding the transfer to Ripple’s $439 million shadow wallet, the market had the perfect recipe for forced derevalization.
rlusd mint
Amidst the chaos, Ripple quietly accelerated its stubcoin ambitions, minted RLUSD 50 million this month alone. The move coincides with a vibrant $2520 billion Stablecoin market, with giants like Tether and Circle generating massive revenues from Treasury-backed reserves. If RLUSD gains traction, it can provide Ripple with a lucrative revenue stream that is independent of XRP’s volatility.
However, for XRP holders, the bigger question is whether RLUSD adoption will translate into ecosystem stability. In theory, deeper liquidity and institutional use cases of Ripple’s Stablecoin could enhance the demand for XRP as a bridge asset.
However, if RLUSD overshadows XRP with Ripple’s own financial strategy, the token risks being an afterthought on the company’s long-term vision.