XRP News Today: XRP drops below $3 as profit-taking and U.S. tariff fears drive sell-off

XRP's price has fallen below $3 in late July 2025, sparking concerns that the recent bullish momentum may be coming to an end. The decline was attributed to heavy selling pressure from both retail traders and large holders, as well as strategic profit-taking following a failed breakout attempt near key resistance levels [1]. On-chain data suggests that the drop was driven more by planned exits than panic-driven liquidation, with significant inflows to exchanges like Binance signaling that whales and insiders had been preparing to cash in [2]. These inflows, though smaller than the $660 million spike seen in May, coincided with the recent price reversal, reinforcing the idea that the sell-off was part of a broader profit-taking strategy [1].

Technical indicators highlight the bearish shift in market sentiment. The Relative Strength Index (RSI) dropped into oversold territory, and the On-Balance Volume (OBV) showed a sharp decline, indicating aggressive selling and waning buying interest [1]. The price’s inability to break past the $3.17 resistance level further weakened its bullish case, with trading volume surging to nearly four times the average during the decline [2]. The Binance liquidation heatmap also revealed intense activity just above $3.20, suggesting that leveraged long positions were caught off guard by the sudden downturn [1]. This cluster points to a potential bull trap, where traders were lured in before a cascade of forced sell-offs pushed the price below $3 [1].

The broader market environment has also contributed to the downward pressure. Renewed U.S. tariff fears have led to a risk-off trend, with investors pulling funds from volatile assets like XRP and shifting toward more stable investments [2]. However, early signs suggest that institutional buyers may be stepping in at key support levels around $2.94–$2.98, which could provide a short-term floor for the price [2]. Analysts are closely watching whether XRP can hold above this support zone, as a sustained close below $2.94 could trigger a deeper correction toward $2.65–$2.70 [2].

Despite the recent drop, some analysts remain cautiously optimistic. Technical models project potential price targets as high as $7 to $11, and even $24, under favorable market conditions and continued growth in Ripple’s ecosystem [2]. Van Code, a noted analyst, has suggested that a false breakdown below $3 could be followed by a new rally if XRP manages to break above $3.30 [5]. This would require a return of buying pressure and a shift in market sentiment, especially from large holders who have played a significant role in shaping XRP’s recent trajectory [1].

The next few days and weeks will be crucial in determining XRP’s short-term direction. A successful reclaim and close above $3.03 would signal renewed bullish momentum, while a sustained bearish bias could prolong the current correction [2]. Investors are advised to closely monitor on-chain activity, key resistance and support levels, and broader macroeconomic factors like trade policies and inflation, which continue to influence market behavior [2].

Source:

[1] AMBCrypto, XRP sell-off pushes price below $3 - Is the rally over? https://ambcrypto.com/xrp-sell-off-pushes-price-below-3-is-the-rally-over/

[2] The, Crypto darling XRP under pressure, price dips below $3 - What's causing the drop? Is a massive selloff coming? https://m.economictimes.com/news/international/us/crypto-darling-xrp-under-pressure-price-dips-below-3-whats-causing-the-drop-is-a-massive-selloff-coming/amp_articleshow/123042471.cms

[5] AInvest, XRP Dives 6.36% Amid U.S. Tariff Fears and Profit-Taking https://www.ainvest.com/news/xrp-news-today-xrp-dives-6-36-tariff-fears-profit-pressure-2508/