Why is XRP price down today?

Key takeaways: XRP price drops 5% amid a marketwide correction. XRP Ledger Foundation spots a backdoor vulnerability in its code library. The 6% drop in open interest over the last 24 hours signals waning confidence. Over $11 million in long position liquidations liquidated. XRP ( XRP ) fell on April 24, down 5% in the last 24 hours to trade at $2.16, fueled by fundamentals, market dynamics, and technical factors. XRP/USD hourly chart. Source: Cointelegraph/ TradingView Let’s take a closer look at the factors driving XRP down today. Backdoor vulnerability in XRP Ledger sparks concern A recently identified backdoor vulnerability in the XRP Ledger’s JavaScript library has likely rattled investor confidence, leading to today’s correction in XRP price. The issue was first detected on April 21 by Aikido Security’s monitoring system, which revealed that sophisticated attackers compromised the library, introducing a backdoor designed to steal private keys and gain unauthorized access to crypto wallets. Source: Aikido Security The XRP Ledger Foundation confirmed the incident in an April 22 statement, saying they were aware of the issue and the development team is “working on fixing it.” Earlier today, a security researcher from @AikidoSecurity identified a serious vulnerability in the xrpl npm package (v4.2.1-4.2.4 and v2.14.2). We are aware of the issue and are actively working on a fix. A detailed post-mortem will follow. — XRP Ledger Foundation (Official) (@XRPLF) April 22, 2025 In a follow-up post on X, the XRP Ledger Foundation said it had already upgraded the code repository to “remove the previously compromised version.” While no immediate exploits were reported, the discovery raised fears of potential supply chain attacks, prompting developers and users to urgently review dependencies. Drop in OI dampens XRP’s uptrend XRP open interest (OI) has decreased by 6.7% to $3.90 billion over the last 24 hours. This decline in OI signals reduced trader confidence and liquidity, driving down prices. XRP derivatives data. Source: CoinGlass The drawdown in XRP price has also triggered liquidations on the last day, where long positions valued at $11.61 million were forcibly closed, compared to just $1.58 million in shorts. This reflects heightened selling pressure as bullish traders are forced to sell at a loss, further pushing prices lower. The combination of forced sell-offs and low market participation has amplified XRP’s bearish momentum. The 24-hour long/short ratio of 0.9399 and a 22% drop in trading volume to $8.82 billion suggests a waning bullish sentiment. XRP Long/Short Ratio Chart. Source: CoinGlass XRP price: temporary correction? From a technical perspective, the XRP’s losses today are part of a correction within a classic bull flag pattern , which points to a continuation of the uptrend. XRP/USD is attempting a breakout from the flag in the four-hour timeframe, as shown in the chart below. A decisive four-hour candlestick close above the flag’s upper boundary at $2.18 and later a rise above the flag’s high of $2.30, accompanied by high volume, could see XRP price rally toward the bullish target of the prevailing chart pattern at $2.42. TOTAL crypto market capitalization daily performance chart. Source: TradingView XRP price remains above all the major moving averages, suggesting that the market conditions still favor the upside. However, if XRP closes below the support level of $2.18, it would extend the decline to retest the $2.10 to $2.13 demand zone, which is the 200-day SMA, 50-SMA, and the lower boundary of the flag. Popular analyst Dom said the altcoin must overcome the resistance at $2.20 before making a run toward $2.40 or higher. Source: Dom This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.