Why XRP Is Falling Harder Than Other Major Cryptocurrencies

XRP is facing a rough stretch, currently sitting 67 percent below its all time high. This makes it the worst performer among the top five cryptocurrencies. While Bitcoin and Ethereum have also seen drawdowns, XRP has struggled to regain its footing, dropping significantly more than its peers over the last 90 days. When market risk increases, XRP tends to amplify the decline rather than hold steady.

The core issue is a crowded derivatives market. Data shows that both retail investors and large traders are heavily positioned on the long side. This leaves very few new buyers to push the price up. When the price dips, these leveraged traders are often forced to sell, which creates a cycle that drags the price down even further. History shows that $700 million was wiped out in a recent cascade of these forced liquidations.

To make matters worse, the largest holders are quietly moving to the sidelines. Wallets holding one billion XRP or more have steadily reduced their supply over the last three months. These whales typically provide a floor for the price during downturns, but their recent exit leaves the market vulnerable to deeper drops. For the trend to shift, the market needs a significant reduction in leverage or a clear return of whale accumulation.