Market Analysis: XRP Plunges Over 10% Amid U.S. Debt Concerns and Broader Altcoin Volatility

XRP Faces Major Pressure as Tether Takes Fourth Place in Market Cap Rankings

The cryptocurrency market is concluding this week with significant downward pressure, with XRP emerging as one of the most severely impacted assets. Once firmly positioned as the third-largest cryptocurrency by market capitalization, XRP has now been displaced to fourth position as Tether moves ahead in the rankings.

Over the past seven-day period, XRP has experienced a substantial 10% decline, currently trading at $2.84. The downward momentum continued today with an additional 1.67% loss, pushing the price below the psychologically significant $3.00 threshold. Technical indicators suggest support has formed in the $2.82–$2.84 range, a critical area for potential price stabilization.

U.S. Debt Crisis and Potential XRP Implications

The deteriorating U.S. debt situation appears to be significantly influencing market sentiment. Current data shows U.S. national debt exceeding $37 trillion, while global debt has reached a staggering $251 trillion – approximately 235% of global GDP according to International Monetary Fund assessments.

Versan Aljarrah, founder of Black Swan Capitalist, presents a compelling argument regarding the current financial framework: "Global debt cannot be repaid under these conditions. It must be restructured through neutral assets like XRP, tokenized gold, and regulated stablecoins."

The analysis positions XRP uniquely in potentially unlocking trapped liquidity and facilitating the conversion of trillions into a tokenized economic structure. RippleNet's On-Demand Liquidity (ODL) mechanism has demonstrated effectiveness in cross-border transaction facilitation, with adoption metrics showing positive growth. Institutional testing of XRPL tokenization continues to advance through organizations including DBS, Franklin Templeton, and Ripple's RLUSD stablecoin initiative.

SWIFT Exploring Blockchain Solutions Including XRP Ledger

The conversation around global payment infrastructure is evolving, with Ripple and XRP playing potential roles in this transformation. SWIFT is currently conducting pilot programs for blockchain-based systems, with XRP Ledger and Hedera among the technologies under evaluation for cross-border settlement enhancement. However, market analysts remain divided on whether XRP will secure a position as a primary settlement layer or function as one component within a broader interoperability framework.

Technical Analysis: Mounting Selling Pressure

From a technical analysis perspective, trader behavior indicates significant sell-side pressure, with the bullish momentum observed last week rapidly dissipating.

The 30-day moving average currently sits at $2.89, marginally above the present price level. Failure to reclaim position above this technical indicator would signal a decisive shift toward bearish control in the short-term outlook.

The $2.80 support level has emerged as a critical battleground for price action. A breakdown below this threshold could trigger further downward movement, while maintaining position above could establish foundation for recovery. Market participants are closely monitoring whether XRP can successfully rebound to the $2.89–$2.90 range or if selling pressure will intensify.

Alternative Cryptocurrency Market Developments

PEPE Shows Signs of Accumulation Despite Bearish Charts

While recent chart formations for PEPE appeared bearish at first glance, whale transaction data suggests accumulation activity is occurring. Institutional and large-scale buyers appear to be quietly establishing positions, potentially setting the stage for a breakout that could trigger momentum-based buying. Current price action indicates PEPE maintains resilience despite market headwinds, with potential upside if large holder accumulation continues.

FLOKI Demonstrates Short-Term Bullish Indicators

FLOKI displays encouraging short-term momentum with price rallies in recent sessions, though market analysts caution against expectations of extreme price targets in the immediate future given its current valuation and market capitalization. Short-term bullish movement remains possible if current buying pressure maintains consistency.

XPL Experiences Extraordinary 1280% Surge

XPL has delivered remarkable performance with an explosive 1280% price increase accompanied by substantial 24-hour trading volume, confirming significant market interest. After reaching a peak value of $1.4500, the price has demonstrated stability around the $1.38 level.

Altcoin Season Index Remains Elevated Despite Market Correction

Despite the recent market correction impacting Bitcoin and major altcoins including ETH, SOL, and AVAX, the Altcoin Season Index currently registers at 67, indicating altcoins continue outperforming Bitcoin across numerous instances. Some market analysts interpret this as temporary liquidity rotation, suggesting capital is flowing back to Bitcoin initially before potentially redistributing to alternative cryptocurrencies in subsequent cycles.