XRP News Today: XRP Dips 19% as Overbought Correction Tests Critical $3 Support

Generated by AI AgentCoin World
Thursday, Jul 24, 2025 3:37 pm ET2min read
ETH
--
XRP
--
Aime RobotAime Summary

- XRP dropped 19% to $2.95, triggering $113M in long liquidations, with $3 now a critical support level for bullish reversals.

- Analysts view the correction as necessary after overbought conditions, citing RSI declines from 88 to 61 as reduced pressure.

- Market sentiment remains cautiously optimistic, with $3.35 identified as key for maintaining bullish momentum amid institutional adoption.

- Long-term forecasts target $7–$10, while short-squeeze risks and $2.60 support remain pivotal for near-term price direction.

XRP has seen significant volatility in recent weeks, with the token dropping nearly 19% from its multi-year high of $3.66 to $2.95, triggering $113 million in long liquidations, of which $106 million were long positions [1]. Despite the sharp correction, analysts view the decline as a necessary correction following a period of overbought conditions, with the $3 level now serving as a critical support zone. Holding above this threshold could catalyze a bullish reversal, while a breakdown might push the price toward the 200-period simple moving average at $2.60 [2].

Technical indicators reinforce the narrative of a cyclical pullback. The Relative Strength Index (RSI) surged to 88 last week, signaling an overbought condition that made a retracement inevitable. By July 24, the RSI had cooled to 61 on the weekly chart and 56 on the daily timeframe, indicating reduced pressure but still leaving room for both upward and downward movement [3]. Analysts highlight the $3 support level as pivotal, noting that a successful defense could reignite the rally toward $3.66, while a failure might delay the uptrend but could also create a buying opportunity at $2.60 [4].

Market sentiment remains cautiously optimistic despite the volatility. CryptoData, a prominent analyst, described the selloff as a “massive flush” of leveraged long positions but suggested the worst of the correction may already be over, even though liquidations did not reach the $1 billion threshold historically linked to short-term bottoms [5]. Egrag Crypto echoed this sentiment, characterizing the dip as an “emotional shakeout” and advising long-term holders to avoid panic. The analyst noted aggressive buying activity following initial selling waves, though sellers have since re-entered the fray, creating a tug-of-war near key levels [6].

Long-term projections remain undeterred. Conservative forecasts, such as those from analyst Dom, point to a $7–$10 price range depending on market dominance and macroeconomic trends. Immediate resistance lies at $3.40 and $3.66, with a breakout above the latter potentially unlocking targets of $4 or $4.86 [7]. Analysts also warn of a short-squeeze risk, as massive short positions could force coverings if buyers push the price higher, accelerating upward momentum [8].

The path forward hinges on XRP’s ability to consolidate above $3.35, a level seen as critical for maintaining the broader bullish thesis tied to institutional adoption and regulatory developments. While the 19% weekly decline has tested market confidence, the asset’s divergence from weaker performers like Ethereum—surpassing exponential moving averages with stronger volume—suggests XRP’s unique positioning as both a utility-driven and speculative asset remains intact [9].

Sources:

[1] [XRP Rebounds From Nearly $3 After 10% Drop, Signals…](https://sg.finance.yahoo.com/news/xrp-rebounds-nearly-3-10-114029279.html)

[2] [XRP (Ripple) Price Prediction Dips 3% But Rally Far From…](https://thetradable.com/crypto/xrp-ripple-price-prediction-dips-3-but-rally-far-from-over-5)

[3] [XRP Sheds 19%, But Analysts Say 'Sit Back, Chill and…](https://www.tipranks.com/news/xrp-sheds-19-but-analysts-say-sit-back-chill-and-relax-because-10-15-is-still-in-play)

[4] [XRP Eyes Drop Towards $3, But Bullish Narrative Is Still In Play](https://www.livebitcoinnews.com/xrp-eyes-drop-towards-3-but-bullish-narrative-is-still-in-play/)

[5] [XRP (Ripple) Price Prediction Holds Strong Above $3.35…](https://thetradable.com/crypto/xrp-ripple-price-prediction-holds-strong-above-335-despite-260m-short-squeeze-risk-1)

[6] [XRP (Ripple) Price Prediction Dips 3% But Rally Far From…](https://thetradable.com/crypto/xrp-ripple-price-prediction-dips-3-but-rally-far-from-over-5)

[7] [XRP Sheds 19%, But Analysts Say 'Sit Back, Chill and…](https://www.tipranks.com/news/xrp-sheds-19-but-analysts-say-sit-back-chill-and-relax-because-10-15-is-still-in-play)

[8] [XRP (Ripple) Price Prediction Holds Strong Above $3.35…](https://thetradable.com/crypto/xrp-ripple-price-prediction-holds-strong-above-335-despite-260m-short-squeeze-risk-1)

[9] [Is

XRP
Becoming a Stronger Competitor?](https://www.ainvest.com/news/comparing-xrp-ethereum-xrp-stronger-competitor-2507/)