Why Is XRP Price Down 9% Today?
Highlights
- XRP price felled in sharp reaction to the XRP Ledger downtime in temporary disruption.
- Ripple CTO David Schwartz confirmed the network resumed normal operations without transaction or asset losses.
- XRP's trading volumes dropped 41%, with liquidations reaching $21 million.
- The Ripple cryptocurrency maintains strong YTD inflows of $105 million, driven by institutional interest
XRP price is once again facing strong selling pressure, crashing more than 8% and moving back to $2.40. The Ripple token fall comes as the XRP Ledger halted blockchain production for nearly an hour on Tuesday. However, Ripple CTO David Schwartz has confirmed that the network has recovered and is almost back to normalcy.
XRP Price Drops Amid XRP Ledger Downtime
On Tuesday, the XRP Ledger faced some downtime for an hour before resuming operations. However, the development was enough to send XRP price down by 8% to its crucial support of $2.50.
With the XRP Ledger halting the block production for an hour, the network activity froze at the ledger height of 93927173. The Ledger has once again resumed normal operations without reporting any loss of transactions or assets.
Ripple CTO David Schwartz acknowledged the development stating: “We don’t know exactly what caused the issue yet”. He further noted that although the consensus was running, the validations were not published which caused the network to drift apart.
Ripple CTO added,
“Validator operators manually intervened to choose a sane starting point and begin publishing validations from there.”
Ripple Community Celebrates Quick Network Recovery
Commenting on the network recovery, the Ripple CTO referred to the Unique Node List (UNL), a core component of the XRPL consensus mechanism. “Very few UNL operators actually made any changes, as far as I can tell, so it’s possible the network spontaneously recovered. I’m not sure yet,” said Schwartz. Other community members have backed Ripple for this quick recovery.
Edo Farina, head of XRP Healthcare, the first healthcare platform built on the XRP Ledger said:
“The $XRP Ledger has been operational for over 110,000 hours since its launch in 2012. With today’s halt, the total downtime where validators failed to agree on transactions reached about 2 hours. That’s 99.999% of efficiency. The MOST efficient blockchain in existence!”
He further clarified that the Ripple network halt wasn’t typically the outcome of network congestion but instead related to the consensus mechanism.
Last week, the XRP Ledger implemented the AMMClawback amendment, a significant upgrade aimed at bolstering the regulatory compliance of its Automated Market Maker (AMM) pools.
Will XRP Price Bounce Back Again?
As of press time, XRP price is down 7.3%, trading at $2.51, with daily trading volumes crashing 41% to $13.11 billion. Furthermore, the Coinglass data shows that XRP futures open interest is down 12.2% to $3.65 billion while the 24-hour liquidations have soared to $21 million.
For a while, the XRP price has been oscillating between $2 to $2.65. For the Ripple cryptocurrency to begin a strong rally to $3 and beyond, XRP should first break past $2.65 on the upside. Despite this current turbulence, market analysts haven’t ruled out the chances of a mega Ripple rally to $15 and beyond.
Earlier this week, Ripple unlocked 500 million XRP amid discussion around XRP reserves. Since the beginning of 2025, XRP has seen strong inflows. Coinshares report shows that the Ripple cryptocurrency has solidified its position as the second-best performing altcoin, recording year-to-date (YTD) inflows of $105 million.
Notably, the digital asset attracted $15 million in inflows just last week, underscoring growing investor interest. Additionally, the push for introducing spot XRP ETF by asset managers Grayscale and Canada’s Purpose Investments has further drawn institutional interest.
- Michael Saylor Says “No New Orange Dots” Pausing Bitcoin Buys as Holdings Hit Record $79B
- Experts Turn Bullish on Pudgy Penguins as PENGU Leads Meme Coin Buys on Solana
- ASTER to Launch Phase 2 Airdrop on October 10 as Open Interest Tops $5B in Two Weeks
- El Salvador’s Bitcoin Holdings Hit $475M Profit as BTC Becomes World’s 7th Largest Asset
- Breaking: Bitcoin Hits New ATH Above $125k as ‘Uptober’ Kicks Off in Full Force
- Dogecoin Price Rebounds 15% From Buy Zone as Whales Add 30M DOGE – Can Bulls Push Beyond $0.30?
- FLOKI Price Prediction as ETP Listing Drives Adoption—Is a 160% Rally Ahead?
- BNB Coin Price Hits ATH as Derivatives Activity Soars—Is $1,520 the Next Stop?
- Aster Price Eyes $3 After Channel Breakout as Open Interest Surges to $1.37B
- Will XRP Price Hit $5 if the SEC Approves ETFs This Month?
- Bitcoin Price Hits $120K Ahead of Q4 — Can Citigroup’s Forecast Hold Up?
Why Trust CoinGape
CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more…to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.
