XRP Price Prediction: Can Ripple Rebound After $1.5B in Crypto Liquidations?

The crypto market was shaken by liquidations worth more than $1.5B. The tumultuous downturn referred to as “Red September 2025″ was attributed to a combination of macroeconomic tailwinds and a lack of clarity around crypto regulations globally. The fragile market witnessed a large-scale selling off, hitting the leading cryptocurrencies such as Bitcoin (BTC), Ethereum (ETC), and XRP, with ETH taking the largest share of the heat.

As the crypto market felt the brunt of the brutal sell-off, crossing around $162 billion, investors are closely watching the price movements of key cryptocurrencies. Amidst the steep downturn, the Ripple-backed XRP has shown resilience and rebounded, trading near $3. 

What Macro Factors Prompted the Record Crypto Liquidations?

The record sell-off was triggered by the larger macroeconomic headwinds hitting the US economy. The US economic growth has been slowing down, and the weakening labour market has lowered investor confidence. The shaky waters are reducing the risk appetite, and the investors are prompted to sell off riskier assets like crypto.

Despite the Fed rate cuts, the US dollar remains strong, making the emerging digital assets less attractive. The ongoing geopolitical conflicts made the dollar a safer choice. This further exacerbated the downturn in the riskier crypto market.

The rising inflation rate is another matter of concern, weakening the market and investor confidence. Large sales of even the older cryptocurrencies triggered a chain reaction of liquidations. The uncertainties regarding the rising tariffs contributed to the market uncertainties.

Along with macroeconomic and geopolitical headwinds, the lack of clarity regarding the crypto regulations in the U.S. and abroad also influenced the market sentiments. The narratives around stricter crypto exchange rules and anti-money laundering measures, especially in the EU, have added to the volatility. 

How XRP is Faring Amidst Liquidations

Amidst the crypto market crash and liquidations, the Ripple-backed XRP is trading around $ 2.85. The XRP saw a steep fall, followed by the record sell-off. Despite the fall, XRP rebounded to trading near $3. The price has experienced a slight drop in the past 24 hours, and the 24-hour trading volume stands at $ 7.86 billion.

The Fear & Greed Index remains at 44, indicating fear. The market sentiment is bearish. The XRP only had 11 green days in the past 30 days. The 6% yearly inflation remains a cause of concern. The XRP has a medium volatility of 3.38%.

On the positive side, XRP is trading above its 200-Day SMA of $ 2.57. The 14-Day relative strength index (RSI) remains at 41.72. XRP has a market cap of $ 170.04 B, ranking first in the US-based Crypto Coins & Projects sector.

XRP Price Predictions: Will XRP overcome the $3 barrier?

It is worth noting that although the crypto market witnessed a record wipeout, XRP remained resilient. Crypto analysts have been predicting XRP hitting $5 at the end of 2025. The more conservative predictions project a price change of $ 2.77 and $ 3.38 in 2025. Even though conservative estimates forecast a lower price, crypto enthusiasts are not completely averse to the $5 prediction in the last quarter of 2025 or at the beginning of 2026.

The surge in prices depends on whether XRP can cross its critical resistance point of $3. The barrier, both technical and psychological, for the traders was that the token had previously gone down after reaching around $3 back in 2018. 

The optimists, on the other hand, point out the real-world utilities of the token, especially in cross-border payments. The XRP enables payments across borders, bypassing traditional systems like SWIFT. The debut of the REX-Osprey XRP ETF has further put the spotlight on XRP. The enhanced institutional adoption and investment would strengthen XRP further.

If the financial institutions adopt XRP for cross-border transactions, it will boost investor confidence. The new ETF approvals and institutional demands could build a bullish outlook on the long-term potential of Ripple. On the contrary, the unclear stance of the Securities and Exchange Commission (SEC) towards XRP and delays in approving ETFs could make investors stay away from investing in the token. The weakening macroeconomic parameters and global regulatory uncertainties remain a cause of concern.