XRP News Today: XRP Slides Below $3 as $2.90 Support Tested Amid Bearish Momentum

XRP’s price movement on August 20, 2025, indicates increasing bearish pressure as the asset trades below the $3 level and tests the $2.90 support area. Analysts note that if bulls fail to reclaim the $3.30 resistance level, the price could face a significant drop to either $2.60 or as low as $2. This potential decline is driven by broader market weakness, declining risk appetite, and on-chain indicators showing reduced liquidity and buyer participation across large-cap altcoins [1].

The $2.90 level has functioned as a temporary support since mid-August. A decisive break below this level would likely trigger accelerated selling toward $2.60, with $2.00 being another critical support zone observed earlier in the year [1]. Volume spikes accompanying breakdowns further confirm the increased risk on the downside.

Technical analysis highlights the importance of the $3.30 resistance. Reclaiming this level would be a bullish signal, suggesting renewed momentum and a potential recovery toward prior highs near $3.50. However, with short-term momentum still bearish, traders are advised to monitor volume and price action closely for signs of conviction [1].

For traders navigating this market environment, risk management is crucial. Stops should be placed below $2.90 for short-term long positions to limit downside exposure. Additionally, any move above $3.30 should be analyzed for sustained volume, as this would indicate stronger buyer participation [1]. Long-term investors considering accumulation zones should focus on $2.60 and $2.00, where defined support levels present opportunities for scaled entries.

Long-term holders facing the dip may consider dollar-cost averaging into the $2.55–$2.00 range while adhering to position sizing discipline and monitoring volatility or broader market conditions before committing to buy-ins [1].

In summary, XRP’s price action suggests vulnerability below $3, with $2.90 acting as a critical pivot point. Traders are advised to watch the $3.30 resistance for bullish signals and to remain alert to the defined support areas at $2.60 and $2.00. As the market continues to evolve, tracking volume and momentum will be key to managing risk and identifying potential turning points [1].

Source: [1] XRP Could Retreat to $2.60 or $2 If $3.30 Resistance Holds, $2.90 Support in Focus (https://en.coinotag.com/xrp-could-retreat-to-2-60-or-2-if-3-30-resistance-holds-2-90-support-in-focus/)