The price of XRP has fallen below a crucial psychological barrier of $3, raising red flags for investors and signaling possible further downside in the days ahead.
XRP slips to $2.94, market cap sheds $5B
As of Wednesday morning, XRP is trading at $2.94, according to FXStreet and Coinspeaker data. The drop from earlier highs of $3.03 represents a 2.5% daily decline and a $5 billion loss in market capitalization, now standing at approximately $175 billion.
Trading volume rose by 4.48% to over $5.79 billion, suggesting a high-activity session possibly fueled by profit-taking or large-scale repositioning by institutional holders.
What’s causing the price drop?
Crypto analyst Ali Martinez noted on X (formerly Twitter) that the Tom DeMark (TD) Sequential indicator flashed a sell signal near XRP’s recent high of $3.60, suggesting the rally may have been overextended.
Further:
- Whale wallets reportedly sold over 720 million XRP in the past 24 hours
- The MVRV (Market Value to Realized Value) death cross formed, typically a bearish signal
“XRP’s $3 support may no longer hold. We’re watching $2.80 and even $2.40 as potential floors if selling pressure persists,” Martinez said.
XRP chart signals turn bearish
Technical indicators on XRP’s daily chart show increasing downside momentum:
- RSI is trending downward, hovering near the 45-mark. A drop below 45 could confirm bearish dominance.
- MACD shows a bearish crossover, with the MACD line dipping below the signal line and expanding red histogram bars.
- Bollinger Bands suggest growing volatility, with XRP trading near the lower band at $2.74. A close below this level could intensify the decline.
Support and resistance to watch
- Resistance: $3.16 (20-day SMA), $3.30
- Support: $2.80 (interim), $2.48–$2.40 (major)
Analysts warn that if XRP fails to reclaim $3 quickly, bears may retain control, with deeper corrections likely in the short term.
What’s next for XRP?
Despite short-term weakness, 88% of CoinMarketCap users remain bullish on XRP’s long-term prospects. Broader developments — like the GENIUS Act and Ripple’s plans to launch its RLUSD stablecoin — could provide legal clarity and institutional use cases that support price recovery later in the year.
But over the next 10 weeks, XRP faces headwinds:
- Strong competition from Remittix (RTX) and other payment tokens
- Technical breakdowns that may spook retail investors
- Whale behavior, which remains volatile
Key Takeaways:
- XRP is trading below $3 amid high-volume selloffs and bearish technical signals
- Analysts eye $2.40 as potential price floor if downtrend continues
- Whale activity and MVRV signals suggest more short-term pain
- Longer-term optimism remains tied to institutional adoption and legal clarity
This content is brought to you by the FingerLakes1.com Team. Support our mission by visiting www.patreon.com/fl1 or learn how you send us your local content here.
