XRP Analysis: Why Does XRP Drop Every Time Bitcoin Drops?

XRP (CRYPTO: XRP) fell 16% in October 2026, more than double Bitcoin’s 7.3% decline (CRYPTO: BTC). By October 30, XRP hit its monthly low at $1.20, coinciding with Bitcoin’s drop to $76,141. So, why does XRP drop more dramatically when Bitcoin does? Let’s explore why this happens and what might change it.

XRP is priced at $1.25, down 65.8% from its peak of $3.65 on July 17, 2025. Bitcoin is currently trading at $78,050.

How Bitcoin’s Selloff Dragged XRP to $1.20

The late-October decline in XRP was triggered by a drop in Bitcoin’s price, which began on October 26 amid a selloff in AI-related stocks. When Bitcoin hit a multi-week low on October 30, news of a hack at Binance, one of the largest crypto exchanges, further intensified the decline.

Outflows from U.S. spot Bitcoin ETFs, which hold Bitcoin and trade like stocks, highlighted market pressure. On October 30, these ETFs experienced their largest one-day net outflow since early October, paralleling Bitcoin’s drop to $76,141.

XRP followed suit, despite no negative news of its own. Most XRP trades occur on the same exchanges as Bitcoin, where it’s often priced against Bitcoin and stablecoins, which are crypto tokens tied to the U.S. dollar. As Bitcoin’s price falls, XRP’s pricing on these exchanges typically adjusts downwards as well.

Leverage and Big Traders Make XRP Fall Harder

Leverage plays a crucial role in exacerbating XRP’s losses. Many traders borrow funds to amplify their trades, and exchanges often use a shared margin account to secure these loans. When Bitcoin’s value declines, the collateral in that account shrinks, prompting exchanges to liquidate positions to cover the loans. This forced selling can affect XRP even when no negative news directly impacts it.

Once exchanges liquidate overleveraged positions, selling pressure typically eases. However, no data currently shows how much of XRP’s drop on October 29 and 30 was due to liquidations versus regular selling.

Additionally, large trading firms and market makers usually treat crypto trades as a single entity. Thus, when they reduce their Bitcoin exposure, they often sell XRP at the same time, adding further downward pressure.

XRP Moves With Bitcoin, Just With Bigger Swings

XRP’s price movements closely mirror Bitcoin’s. Over the past 90 days, the correlation between the two assets has been a strong 0.89, indicating they tend to move together. This correlation drops slightly to 0.86 over the past year. Furthermore, XRP’s beta, which measures its volatility relative to Bitcoin, stands at 1.27, suggesting it moves approximately 1.27% for every 1% change in Bitcoin.

In October, this closeness was even more pronounced, with the correlation rising to 0.92 and its beta increasing to 1.4. Even during quieter periods, XRP tends to mimic Bitcoin; for instance, in the week leading up to November 1, XRP fell 4.2% while Bitcoin dropped 3.3%. Over the previous 24 hours, XRP lost 0.2% while Bitcoin rose 0.7%.

Moving averages show a similar trend: XRP is trading below its 20-day average of $1.31, its 50-day average of $1.39, and its 200-day average of $1.28. In comparison, Bitcoin is under its 20-day and 50-day averages of $81,023 and $81,906, but remains above its 200-day average of $73,136.

While Bitcoin maintains a long-term upward trend, XRP’s trend has broken, with year-to-date statistics showing XRP down 32.1% in 2026, compared to Bitcoin’s 10.9% decline. The late-October selloff saw heavy trading, with October 29 and 30 marking two of XRP’s busiest trading days of the month, paralleling Bitcoin’s busiest day.

XRP Has Broken From Bitcoin Only Three Times in a Year

Over the past year, XRP has briefly broken away from its pattern of closely following Bitcoin only three times. From December 26, 2025, to January 24, the correlation dipped to 0.75; during that period, XRP rose 6.4% while Bitcoin rose 2.2%. Similarly, from April 14 to May 13, correlation fell to 0.71, with XRP gaining 3.7% while Bitcoin rose 6.5%.

In another instance, from July 19 to August 17, correlation hit 0.73, with XRP dropping 8.2% while Bitcoin slipped only 0.5%. Notably, none of these instances can be attributed to XRP-specific news.

Why Does XRP Drop When Bitcoin Drops, and Can It Hold $1.20?

XRP tends to drop alongside Bitcoin because they are traded on the same exchanges, share common leverage accounts, and are often sold together by large traders. The recovery observed since October 30 appears weak, as trading volume on October 31 was much lower than in the preceding days—suggesting a pause from sellers rather than a resurgence from buyers.

Watch key support levels closely, as buyers have historically stepped in at these points. XRP’s support is $1.20 (4.2% below the current price), and Bitcoin’s is $76,141 (2.4% below). If Bitcoin closes a day under $76,141, XRP could lose $1.20 too, while a daily XRP close above its $1.31 20-day average (4.8% above) could be the first sign the October selling is over.

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