XRP found itself in choppy waters this week, as its value slipped below the $3.00 threshold, settling into the $2.90 support zone. This price action, occurring between August 19 and August 20, 2025, highlights a cocktail of concerns swirling around the cryptocurrency. Delays in regulatory decisions and blockchain security issues have added to investor jitters, prompting a sell-off driven by both institutional and retail traders.
Ripple of Concerns
At the heart of this market turbulence is a disheartening security audit that placed XRP Ledger at the bottom of a list ranking 15 blockchains. This news has eroded confidence among investors who once saw XRP as a stalwart in the crypto space. “Security is paramount. When trust wavers, markets react—sometimes violently,” noted blockchain analyst Sarah Thompson. For those unfamiliar with XRP’s origins and its role in the financial sector, our article What is XRP? A Cryptocurrency Created For the Financial Sector provides valuable context.
Adding to the pressure, the U.S. Securities and Exchange Commission (SEC) has postponed rulings on several XRP Exchange-Traded Fund (ETF) applications, including a high-profile submission by Nasdaq’s CoinShares, pushing decisions to October. The regulatory limbo has left stakeholders in a state of uncertainty, with many choosing to adjust their portfolios preemptively. “The regulatory environment feels like a moving target,” said crypto strategist Alex Kim. “Investors are wary of being caught off guard.”
Market Dynamics
XRP experienced a 4% drop, plummeting from $3.02 to $2.90 within a 24-hour window. The most precipitous decline occurred on August 19, between 1:00 PM and 3:00 PM, when prices tumbled from $3.04 to $2.93. During this period, trading volume surged to a staggering 137.18 million—nearly doubling the daily average of 71.23 million. This spike in activity suggests significant institutional repositioning, as major trading desks scrambled to adapt to the unfolding scenario.
Despite the turmoil, buyers showed resilience, defending the $2.85–$2.88 support zone multiple times overnight. By the early hours of August 20, XRP found some semblance of stability in the $2.89–$2.90 range. This consolidation indicates a temporary exhaustion of selling pressure, though the market remains on edge.
Eye on the Horizon
Traders are keenly observing whether XRP can reclaim $3.00 as a support level or if it will remain a formidable resistance barrier. The institutional flows around the $2.85–$2.90 zone will be pivotal in determining if this level can establish a firm base. Meanwhile, all eyes are on the SEC’s forthcoming decisions in October, which are poised to inject medium-term volatility into the market. For insights into how XRP is performing alongside other major cryptocurrencies, see our analysis in Crypto Market Conditions ‘Exceptionally Strong’ as Bitcoin, Ethereum, XRP Advance.
The impact of XRP’s security ranking on ETF approval prospects can’t be overstated. Should these concerns linger, they could dampen the enthusiasm for XRP-based products, hampering liquidity and price recovery.
As the cryptocurrency community navigates these turbulent waters, questions about the sustainability of XRP’s current valuation abound. Can the digital asset weather this storm, or are further declines on the horizon? While the answers remain elusive, one thing is clear: the coming months will be critical in shaping XRP’s trajectory in a climate of regulatory scrutiny and heightened security demands.
Source
This article is based on: XRP Pushed Into $2.90 Support Zone Amid ETF Delays, Poor Security Rankings
Further Reading
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Steve Gregory is a lawyer in the United States who specializes in licensing for cryptocurrency companies and products. Steve began his career as an attorney in 2015 but made the switch to working in cryptocurrency full time shortly after joining the original team at Gemini Trust Company, an early cryptocurrency exchange based in New York City. Steve then joined CEX.io and was able to launch their regulated US-based cryptocurrency. Steve then went on to become the CEO at currency.com when he ran for four years and was able to lead currency.com to being fully acquired in 2025.
