XRP News Today: XRP Drops 10% After Profit-Taking at $3 Resistance

XRP, the cryptocurrency associated with Ripple, has experienced a sudden and significant drop in price, falling below the $3 mark after a strong weekly rally. The token is now trading around $2.86, marking a notable decline after reaching a high of over 27 percent last week. The decline is primarily attributed to profit-taking after XRP briefly touched the $3 level on July 14. Resistance at $3.00 and $3.02 proved too tight, causing short-term traders to sell off their positions and leading to a correction in price. This has brought XRP near its support level of $2.60 to $2.80.

Following a sharp rise in spot trading volume and open interest to a six-month high, the dip quickly followed. The rally encouraged traders to unwind positions, generating temporary downward pressure. Analyst Ali Martinez indicated that XRP might still break out if it closes the week above the $3 mark. In the event that it is recaptured powerfully, his optimization assumption is a further orderly retreat to $4.80. Long-time observer Peter Brandt has also forecasted a 60 percent rally to $4.47 should XRP overcome resistance.

While short-term traders are taking profits, on-chain data shows large XRP holders are steadily increasing their positions. Wallets with XRP quantities exceeding one million coins have increased to more than 2,743, with a total supply containing more than 47 billion tokens. These whale wallets have continued to add over time when there is a downward trend, meaning that they are eying a long-term future. Their activity is evidence of the expectation that the token will be helpful in the future, and its price may rise, primarily through the launch of the ProShares XRP ETF on July 18.

Versan Aljarrah, co-founder of Black Swan Capitalist, has also pointed to possible institutional influence behind XRP’s rejection at $3. He says that the future of XRP is to displace the existing cross-border payment systems that may charge huge fees, which may pose a danger to traditional institutions. The implied volatility of XRP, which has reached 96 percent, expresses the current expectations of extreme price moves in the future. A follow-up beyond the $3 mark can result in fresh bullish trends, whereas any further refuting might push lower supports once more.

XRP’s drop today is primarily driven by profit-taking after failing to hold above $3. Whale accumulation and upcoming developments may support recovery if key resistance is reclaimed. The recent price action highlights the volatility inherent in the cryptocurrency market, where sudden shifts in sentiment can lead to significant price movements. Investors had been increasing their exposure to XRP, particularly in the derivatives market, as the asset traded around $2.95. The surge in open interest and the outperformance of top 10 altcoins in gains had contributed to a bullish outlook. However, the recent price drop indicates that market participants are reassessing their positions in light of potential regulatory developments and broader market conditions.