XRP News Today: XRP Drops 22% Amid Bearish Signals and Broader Crypto Sell-Off

XRP is experiencing a deepening pullback following a sharp correction from its July high of $3.70. The token has lost over 22% of its value, trading near $2.81 as of the latest reports, with bearish momentum growing across the broader crypto market. Analysts have noted technical signals indicating short-term exhaustion, including a TD Sequential 9-count on the 3-day chart and a bearish MACD crossover [1]. These signals suggest that the recent rally may have run out of steam, with increased selling pressure evident in both price action and volume data [2].

Resistance levels previously acting as support, such as the $2.95–$3.00 range, have now flipped to barriers, highlighting a weakening in market structure. The recent rejection between $3.40 and $3.70 further confirms that buyers are struggling to push XRP higher amid elevated sell interest [1]. Daily volume has surged to 46.06 million, reinforcing the idea that the correction is gaining traction [2].

Key technical indicators underscore the bearish bias. The RSI has fallen to 45.16, moving below the neutral 50 level and signaling weakening bullish momentum. The MACD line currently sits at 0.0610, below the signal line at 0.1466, with a negative histogram reading of –0.0856. This setup indicates continued downside risk unless bullish forces regain control [1].

Support at $2.65 is now a critical level to watch. A break below this would likely push XRP toward the $2.30–$2.40 range, which aligns with areas of high volume accumulation [2]. If momentum weakens further, the next potential support level lies near $1.93. While the broader trend on higher timeframes remains bullish, a consolidation phase is necessary to stabilize price action before a meaningful rally can resume [1].

Analyst Michaël van de Poppe has identified the $2.40–$2.60 range as a potential key buy zone ahead of any potential rebound. This price corridor has historically shown strength and could attract investors if XRP stabilizes there [1]. Meanwhile, a recent large XRP transfer by Kraken—amounting to $246 million—has raised questions about market manipulation or large-scale profit-taking, though no direct link has been established between the transfer and the current price decline [2].

The broader crypto market has also experienced distress, with over $754 million in liquidations recorded on August 1 as falling prices triggered margin calls and leveraged exits. Ethereum saw a taker sell volume of $335 million in just two minutes, pointing to heightened panic or aggressive profit-taking [3]. The Bitcoin Advanced Sentiment Index has also reached bearish levels, reflecting a shift in investor sentiment toward caution [3].

XRP’s decline appears to be part of a broader market selloff rather than an isolated event. Analysts warn that without strong buying momentum, XRP could continue drifting lower before testing major support zones again. Holding above $2.60 is seen as crucial to maintaining a bullish structure, while a break below this level could trigger a deeper correction toward the $2.00–$2.20 range and eventually the historical demand zone near $1.82–$1.57 [3].

Investors are advised to remain cautious and closely monitor price behavior around these critical thresholds as the market continues to evolve. The pullback has reignited discussions around XRP’s volatility and susceptibility to broader market pressures, with analysts and traders alike preparing for potential further declines or stabilization around key price levels [3].