XRP Price Slumps 3% As Gumi Buys $17M Amid Litecoin Attack

The XRP price tumbled 3% to $2.76 in the past 24 hours despite a $17 million investment commitment from Japanese gaming and blockchain giant Gumi and as Litecoin mocked it as the “Rotten Egg Token.”

Gumi, listed on the Tokyo Stock Exchange, said it plans to complete the XRP purchases by February as part of its Web3 expansion. Backed by its major shareholder SBI Holdings, the firm will integrate XRP into its treasury strategy alongside Bitcoin.

According to an official announcement in the Japanese media outlet CoinPost, the firm’s board of directors has approved the purchase.

Japanese gaming giant Gumi just made a $17M move into $XRP as part of its crypto treasury strategy, backed by SBI.

They’ve already stacked BTC earlier this year, and now XRP joins their balance sheet alongside new ecosystem plays like Flare. pic.twitter.com/tn3R9dci8x

— Tom Tucker (@WhatzTheTicker) August 29, 2025

The focus on XRP is part of Gumi’s dual-asset strategy, which combines BTC and XRP. It sees Bitcoin as a store of value and stability and XRP a strategic investment for its focus on payments systems.

Gumi shareholder SBI also is a long-term Ripple partner in Japan via SBI Ripple Asia, which focuses on blockchain payment systems in Japan and Asia.

Analysts say the move could boost XRP’s credibility and adoption in Asian markets.

Litecoin Trolls XRP With ‘Rotten Egg Token’ Jab

Just as XRP was processing the Gumi news, Litecoin’s official account on X took a dig at the crypto, calling it the “Rotten Egg Token” in a cheeky social media post. The jab quickly went viral, with more than 785k views, and sparking heated debates across X and crypto forums.

Fun fact: A comet smells like rotten eggs, urine, burning matches, and almonds. Most scientists say the closest comparison to this phenomenon on earth is the idea that tokens called XRP would be sold off to retail investors with the illusion that a digital bank drive-up tube is…

— Litecoin (@litecoin) August 29, 2025

The tweet mocked the notion that XRP tokens, which are often marketed as a bridge currency for banking systems, have inherent value just because there is a limited number in circulation.

Such a critique targets the narrative that banks have been preparing for a time when they will all adopt XRP as a replacement for SWIFT, the global interbank payment system.

The XRP army didn’t take long to hit back, with attorney Bill Morgan quickly reminding people of Litecoin’s decline from its former glory:

“Remember when Litecoin was a top 5 coin?” he said. “Me neither. It was so long ago. Remember when XRP was one of the top 3 coins. Me too. Like today.”

X user Anders also weighed in, arguing that Litecoin was on the sidelines while Ripple was making moves in the market.

While Ripple was meeting with banks & financial regulators all over the world to transform the financial system, Charlie Lee was in his basement printing Hodl shirts, followed by dumping his remaining Litecoin on his followers and cashing out into fiat.

— Anders 🏁🌏 (@X__Anderson) August 31, 2025

XRP Price Battles The Downtrend With Bulls Aiming To Defend The $2.57 Zone

XRP has recently experienced a strong upward move from its June low of $1.9, reaching an all-time high above $3.65 in late July.

However, the bears then took charge of the XRP price, with the Ripple token price correcting within a falling channel pattern. XRP is trading around $2.76, just below the 0.5 Fibonacci retracement level at $2.78.

Major indicators also support the downtrend, with the Relative Strength Index (RSI) at 40.12, hovering near the oversold region, which indicates that selling pressure has been dominant.

Meanwhile, the Chaikin Money Flow (CMF) is slightly negative at -0.16, an indication that capital outflows currently outweigh inflows. This reflects reduced buying interest in the short term.

The Moving Average Convergence Divergence (MACD) has also crossed into negative territory, with the blue MACD line below the orange signal line and both below the zero line.

Overall, XRP continues to face pressure within the falling channel, with $2.57 (Fib 0.382) serving as a crucial support level.

Golden Cross Sparks Long-Term Optimism Despite Short-Term Pressure

Due to the recent downtrend, the price of XRP has fallen just below the 50-day Simple Moving Average (SMA) ($3.09). However, the 50-day SMA remains above the 200-day SMA, forming a golden cross at $2.42, indicating that XRP is still on a positive trend in the long term.

If the $2.57 level holds, XRP could see a rebound toward the $3 mark and possibly retest the channel resistance near $3.1–$3.2. A confirmed breakout above $3.2 could trigger a rally toward the $3.67 July high, and potentially higher if momentum strengthens.

However, if XRP fails to defend the $2.57 zone, a deeper pullback toward the 200-day SMA at $2.48 is likely.

The bullish case is supported by Nate Geraci, who noted that the chances of Solana and XRP ETF approval are looking stronger.

You heard it here first…

People are severely underestimating investor demand for spot xrp & sol ETFs.

Just like they did w/ spot btc & eth ETFs.

— Nate Geraci (@NateGeraci) September 1, 2025

According to on-chain data, whales have purchased 340 million XRP in the last two weeks worth approximately $962 million at $2.83, indicating that the asset remains in demand. That’s despite the token falling almost 5% over the same period.

Meanwhile, data from Coinglass shows that $268 million worth of XRP has been withdrawn from exchanges over the past ten days. This accumulation is often seen as a support to push an asset even higher.

Therefore, if renewed liquidity flows into the broader crypto market, we could see some bullish trend reversal in the price of the Ripple token. 

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