XRP Drops 5% to $1.30: What Is Going On?

XRP (CRYPTO: XRP) plunged 4.6% in a single day as Bitcoin (CRYPTO: BTC) struggles near $80,000, although bullish technical signals and expanding XRP Ledger adoption could support a recovery.

SoSoValue data shows U.S. spot XRP ETFs recording $740,410 in daily net inflows, breaking a three-day streak of zero inflows.

Prominent crypto chart analyst Ali Martinez highlighted multiple TD Sequential buy signals on XRP but also cautioned that XRP’s hourly parallel channel points to a possible decline toward $1.25 before a meaningful recovery.

A bounce from that support could push XRP toward $1.40–$1.42 if buyers step in, followed by resistance near $1.50 and a potential rally to $1.60.

While technical indicators point to a potential near-term rebound, expanding institutional use cases could strengthen XRP’s longer-term adoption outlook.

The Growing XRPL Adoption

Ripple executives highlighted improving institutional adoption prospects for the XRPL.

Speaking on the Talking Tokens podcast at Armada Acquisition (NASDAQ:XRPN) Closing Bell, David Schwartz, Ripple’s CTO Emeritus and Evernorth strategic advisor and board member, said the technology needed for banks and asset managers to adopt XRPL is largely in place.

He identified regulatory uncertainty and integration challenges, rather than technical limitations, as the remaining barriers to institutional adoption.

While regulatory headwinds are increasingly turning into tailwinds, Schwartz noted that holding XRP directly on corporate balance sheets remains challenging without structures such as publicly listed entities.

He also emphasized that tokenization represents only the first stage of adoption, with future opportunities spanning lending, investing, payments and broader financial services built around tokenized real-world assets.

Meanwhile, Evernorth CEO Asheesh Birla said the company’s strategy extends beyond simply holding XRP.

The company aims to actively deploy its XRP holdings, generate yield and reinvest those returns to increase the amount of XRP backing each share.

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