XRP Drops 10%: Scams, Exchange Dominance, and Unclear Legal Status Intersect

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XRP Drops 10.34% as Liquidations and Scam Alerts Rise, Ripple CEO Urges Caution

XRP, the cryptocurrency powering Ripple’s payment network, suffered its steepest daily loss since April 2025, tumbling 10.34% to $2.99 on July 24, 2025. The decline was triggered by $89 million in long positions being liquidated, with a significant portion—75 million XRP—sold off on South Korea’s Upbit exchange in just one day. Experts pointed to profit-taking after a recent rally, broader corrections in the crypto market, and growing regulatory uncertainty due to the ongoing SEC lawsuit against Ripple as key reasons for the volatility.

Brad Garlinghouse, Ripple’s CEO, heightened investor concerns by warning about $2.1 billion worth of crypto scams targeting XRP holders in 2025. Fraudsters have leveraged the market’s momentum using deepfake executive videos, phishing sites, and fake YouTube streams promising XRP giveaways. Garlinghouse stressed that Ripple does not run such promotions and advised users to confirm all information through official sources. “If something seems too good to be true, it likely is,” he cautioned. These scams have surged alongside XRP’s recent rally to $3.66, attracting both investors and bad actors.

Regulatory clarity remains a crucial issue for XRP. In July 2023, a court ruled that XRP is not a security when sold to retail buyers but categorized institutional sales as securities. This mixed verdict, which stood after both sides dropped their appeals in August 2025, has left regulatory questions unresolved. Garlinghouse mentioned that the legal fight, which cost Ripple over $150 million, has slowed U.S. market entry but noted progress abroad, including collaborations with financial firms in Japan and the UAE.

Analysts believe the recent plunge could be a temporary pullback rather than a long-term reversal. Past trends show XRP often recovers after similar drops, with key support at $2.90 and $2.50. Bitpanda’s deputy CEO forecasted that XRP could climb to $5.00–$6.50 by the end of 2025 if regulatory issues are settled and ETFs gain traction. Still, liquidity concerns remain, as trading is heavily concentrated on platforms like Binance, Coinbase, and Bitget. A 200% surge in Upbit’s trading volume highlights the token’s susceptibility to rapid price changes.

Garlinghouse also pointed to Ripple’s ongoing expansion, such as the introduction of RLUSD—a stablecoin backed by BNY Mellon—and partnerships with firms like Guggenheim to boost XRP’s role in cross-border payments. Institutional interest is rising, with regulated products like 3iQ’s XRP ETF and HashKey’s tracker fund offering new access points. However, analysts warn that ETFs could increase volatility if large investors exit or inflows reverse.

With XRP now steadying around $3.17, investors are encouraged to watch critical price levels and stay alert for scams. Garlinghouse reaffirmed Ripple’s commitment to practical applications, including DeFi integrations and CBDC projects, as key to XRP’s long-term prospects. Nevertheless, the future will depend on regulatory developments, liquidity distribution, and sustained demand from both institutional and retail participants.

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