XRP News Today: XRP Drops 8% Below $3 as High-Volume Selloff Triggers Liquidations

The XRP price experienced a significant drop of over 8% within a 24-hour period, plunging from a high of $3.17 to a low of $2.94. The decline was triggered by high-volume selling after XRP hit resistance at the $3.17 level, leading to the liquidation of millions in leveraged long positions and amplifying downward pressure. This sharp sell-off has shifted attention to the $2.94 support level, with traders and analysts closely monitoring whether it can hold to prevent further declines [1].

The move below $3 represents a psychological and technical breakdown, reinforcing the bearish sentiment that has gripped the market. According to on-chain data, whale activity has contributed significantly to the selling pressure, with major holders liquidating over $28 million worth of XRP daily. However, a more nuanced picture emerges when examining institutional behavior. Despite the short-term volatility, large wallets have been accumulating over 310 million tokens, suggesting that long-term investors see potential value in the current price range [2].

From a technical perspective, the immediate support levels to watch are between $2.94 and $2.98. A successful defense of this range could provide a foundation for a potential rebound. However, a breakdown below $2.83 could push XRP closer to the $2.65 level, which marks the 50-day exponential moving average and a key threshold for determining the next phase of price movement. Analysts stress that reclaiming $3.00 is critical for bullish momentum, as a sustained move above this level could shift market sentiment [3].

The broader macroeconomic environment has also influenced XRP’s price trajectory. A stronger U.S. dollar and ongoing tariff concerns have weighed on risk assets, including cryptocurrencies. While short-term volatility remains a challenge, analysts suggest that XRP could stage a recovery if accumulation by significant holders continues and overall risk appetite stabilizes. In the near term, a retest of the $3.00–$3.05 range is possible if the support at $2.94 holds, offering a potential buying opportunity for long-term investors [1].

The market appears to be at a crossroads, with heavy selling undermining the $3 level but institutional accumulation providing a counterbalance. Traders and investors are advised to maintain a cautious stance, closely tracking both technical levels and macroeconomic developments. The outcome of the next few days could determine whether XRP reclaims bullish momentum or continues its downward trend [2].

Source:

[1] https://www.coindesk.com/markets/2025/08/01/xrp-falls-8-below-usd3-after-hitting-resistance-high-volume-selloff-signals-weakness

[2] 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/articleshow/123042471.cms

[3] https://finance.yahoo.com/news/xrp-falls-8-below-3-032059490.html