Ripple (XRP/USD) Falls 6% on Manipulation Fears, Liquidations Surge. Will the $3.00 Support Hold?

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Ripple (XRP) is experiencing a lot of price swings on Thursday, affecting many major cryptocurrencies. Ripple has fallen as much as 6% as a host of factors plague the popular token.

A stronger US Dollar did little to help the cause as markets priced in les aggressive rate cuts from the Federal Reserve. The move affected overall market sentiment and cryptos were no exception.

However, XRP/USD is battling its own demons as news started circulating the web today around possible manipulation of the price. This added another layer of intrigue to Ripple which has been the talk of the town for the majority of 2025.

Liquidations Surge

CoinGlass data shows that $59.3 million was lost in the last 24 hours, with long position traders taking the biggest hit. Around $54.7 million in long positions were liquidated, compared to just $4.6 million in short positions.

Could the rise in liquidations lead to a potential short squeeze? Either way a critical time ahead for XRP.

Source: CoinGlass

Validator Alleges Wash Trading Patterns On The XRP Ledger

A validator on the XRPL network, called Grapedrop or Grape, has shared data claiming to show trading activity that could manipulate XRP's price. The data, shared on the social platform X, includes screenshots from the XRPL Console and examples of live transactions. It highlights unusually large and repeated transfers between exchange addresses, which the validator says leave a clear on-ledger trail.

These payments often involve wallets controlled by exchanges, but the amount and frequency are much higher than regular retail activity. Screenshots show large, repeated transfers to and from these exchanges.

For example, the Console data shows transactions of 3,018,977.72 XRP, 460,119 XRP, and 146,757.57 XRP, all moving between Binance-controlled wallets. This looks more like a planned pattern than normal trading by regular users.

Grape explained that XRP's price is often based on volume-weighted averages. Moving large amounts repeatedly between exchanges can increase the volume numbers and affect how the market cap is calculated.

This practice, called wash trading, is used to fake demand, tricking people or automated bots into buying the cryptocurrency.

Grapedrop’s findings certainly raise concern, but they stop short of actually proving price manipulation. However, the significant drop in price today hints that market participants may be concerned about the findings.

Open Interest Surges… Is a Major Move Coming?

XRP's open interest has jumped past $3 billion after months of low activity. This is one of the highest levels in recent months, showing that traders are returning with leveraged bets.

A rise in open interest means more traders are joining the market. It shows more activity and interest in the asset. This could mean more people are trading, there’s better liquidity, or there’s more speculation about price changes.

Source: Cryptoquant

The question is whether XRP/USD is attracting buying or selling interest and whether prices will bounce or continue the selloff.

Let us see if the technicals can give us any other clues.

Technical Analysis - XRP/USD

From a technical standpoint, it looks like XRP/USD has just completed a lower high on the daily timeframe.

This would hint that a lower low is on its way. The challenge lies in the key confluence level around the $3.00 mark.

We have the ascending trendline and psychological $3.00 mark which should provide ample support.

However, the size of the daily candle closed yesterday which was a bearish engulfing candle, hints at the potential for further downside. This coupled with the RSI period-14 crossing below the 50 level, a move which suggests shifting momentum.

This leaves a critical day or two ahead for XRP prices as a break of the trendline and candle close below the $3.00 mark could lead to a decline toward the $2.40 breakout level in the coming days/weeks.

Immediate support rests at $3.00 before the swing low from early August around the $2.75 mark comes into focus. A break of this level could lead to the $2.40 handle and beyond.

On the upside, the $3.30 mark will be crucial. A daily candle close above this level will be the sign bulls need that momentum may be back.

XRP/USD Daily Chart, August 14, 2025

Source: TradingView.com

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