The cryptocurrency market faced a sharp downturn on July 28, erasing over $80 billion in total market capitalization as investors reduced exposure to risk-on assets ahead of the Federal Reserve’s interest rate decision. Ripple’s native token XRP was not spared, dropping from a Monday peak of $1.11 to around $1.05, a decline of approximately 4.5%.
Bitcoin led the market lower, tumbling from $65,600 to $63,000, dragging most altcoins with it. The sell-off appears driven by cautious positioning before the FOMC announcement on July 29, where some analysts suggest there is still a chance of a rate hike despite easing inflation in June.
From a technical perspective, XRP's rejection at $1.11 and fall below the $1.08–$1.10 support zone—which had held through most of July—signaled a breakdown. This triggered a cascade of liquidations, amplifying the decline. However, spot ETF inflows remained positive for the day, though a modest net flow of under $600,000 was insufficient to offset the bearish pressure.
Popular analysts maintained their outlooks despite the pullback. Xaif Crypto noted rising leverage, tight trading ranges, and neutral funding rates alongside drying spot liquidity on Binance, suggesting a significant move could be imminent as both long and short positions get liquidated. CasiTrades reiterated that the next XRP wave could be “violent,” with macro support being tested. She warned that a break below current levels could accelerate a decline toward $0.87, her projected bottom.
For now, XRP remains rangebound between $1.05 and $1.10, with traders closely watching whether bulls can reclaim $1.10 or if bears force a close below $1.05. The next directional catalyst may come from the Fed’s decision or developments in the XRP ETF saga.
