XRP falls as China's biggest IPO shakes markets

XRP falls as China's biggest IPO shakes markets

Anand Sinha

Tue, July 28, 2026 at 10:56 PM GMT+3 3 min read

When China's state-backed chip manufacturer, ChangXin Memory Technologies (CXMT), became the country's highest valued public firm following its initial public offering (IPO) on July 27, it sent shockwaves through Asian equity markets and pushed XRP down to the $1.05 price range.

Bitrue Research Institute, the on-chain analysis and market intelligence platform, analyzed that XRP's pullback, however, mirrors a broader leverage flush driven by macro risk-off, not a fundamental breakdown.

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The CXMT stock surged 466% on its public debut on the Shanghai stock market and briefly valued the company at nearly $550 billion.

As China begins the mass production of locally developed immersion deep-ultraviolet (DUV) lithography machines to narrow the gap with Western semiconductor giants, the report sparked a sharp reassessment of AI-related equities across rival markets in Asia.

South Korea's KOSPI fell 10.84% in its worst single-day performance in years, with Samsung Electronics dropping 13.39% and SK Hynix falling 14.65%.

Japan's Nikkei 225 fell 3.95%, dragged lower by AI-linked declines. The Philadelphia Semiconductor Index in the U.S. also fell 2.23% overnight, with Nvidia down around 5%.

Even the crypto market could not escape the blow. XRP, previously trading within the $1.09-$1.11 range, sharply fell to the $1.05–$1.06 range as the risk-off wave moved through asset classes.

Binance's liquidation heatmap shows XRP long positions piled within the $1.08-$1.11 range, which acted as a magnet for the selloff. But as its price fell below the range, declining long liquidations further quickened the decline. As a result, XRP fell to $1.05.

"The data points to a leverage flush rather than a fundamental unwind," Bitrue Research Institute noted in its analysis. "Long-term holders remain relatively resilient. What we saw on July 28 was short-term traders caught offside by macro news, not a structural shift in conviction among XRP's core holder base."

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How Fed's rate decision weighs in on XRP

The Bitrue Research Institute also weighed in on how the Federal Reserve's much-anticipated July 29 decision on interest rates affects XRP's price movement.

In a base case, XRP could slip into the $1.03-$1.05 support zone following the Federal Open Market Committee (FOMC) announcement. However, it can rebound to the $1.08-$1.11 range.

In a bull case, dovish Fed language on interest rate trajectory could push XRP toward the $1.08-$1.11 range and even potentially surge above $1.15.

In a bear case, the Fed's hawkish message or deteriorating AI CapEx sentiment could see XRP test a lower support level below $1.03.

As per the Bitrue Research Institute, the AI CapEx skepticism following China's CXMT IPO simultaneously represents a headwind and a long-term irrelevance.

In the longer term, XRP's utility case, cross-border payments, institutional settlement, and regulatory clarity, has no direct connection to semiconductor competition or AI infrastructure spending, the on-chain analysis platform highlighted.

XRP was trading at $1.06 at the time of writing, as per Decibel.

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This story was originally published by TheStreet on Jul 28, 2026, where it first appeared in the MARKETS section. Add TheStreet as a Preferred Source by clicking here.