XRP News Today: XRP Falls 16.8% as On-Chain and Technical Signs Signal Bearish Trend

XRP, the third-largest cryptocurrency by market capitalization, is showing increasing signs of near-term weakness as technical and on-chain indicators suggest a potential drop toward the key $2.40 support level [1]. Trading at $2.93, XRP has seen a 16.8% price decline over the past month, despite a 63% recovery from its year-to-date low [1]. The cryptocurrency’s market capitalization stands at $173.8 billion, with daily trading volume reaching $6.4 billion, yet these figures mask a deteriorating trend in key metrics [1].

Nansen data reveals that smart money investors have reduced their XRP holdings by 80% over the last 30 days, indicating a shift in portfolio allocation that often precedes broader market corrections [1]. This reduction is particularly concerning as it typically leads to a domino effect among retail investors, amplifying downward price pressure [1]. CoinGlass data also shows open interest for XRP futures has declined from $10.94 billion in July to $7.56 billion, reflecting reduced speculative activity [1]. The long/short ratio has dipped below 1, with more traders betting on further downside than upside movement [1].

From a technical perspective, XRP has broken below both its 20-day and 50-day moving averages, a classic bearish signal indicating a shift in market control to sellers [1]. The Relative Strength Index (RSI) has formed a bearish divergence with price action, suggesting the uptrend lacks strength [1]. The Aroon Down indicator stands at 92.86%, while Aroon Up remains at 7.14%, reinforcing the strength of the current downtrend [1]. Chart analysis highlights a broken bearish descending triangle pattern, with price falling below the critical $2.95 support level. Traders are now targeting a potential drop toward $2.40, representing an 18% correction from current levels [1].

On-chain metrics further confirm weakening demand. Weekly active addresses have dropped 2.1% to 107,340, while daily active addresses have plummeted from over 608,000 in March to around 33,000 as of August [1]. Transaction volume has fallen by 51% from 2.5 million in June to 1.25 million, indicating a decline in network engagement [1]. The 90-day cumulative volume delta (CVD) remains negative, highlighting intensified selling pressure as traders continue to lock in profits [1]. Over 91% of the XRP supply is currently held at a profit, increasing the likelihood of continued profit-taking and downward momentum [1].

Technical analysis of the XRP/BTC pair also supports a bearish outlook, with the RSI declining from overbought levels to 43, signaling weakening buyer momentum [1]. A breakdown below the 0.0000245–0.0000250 BTC support zone could accelerate the bearish trend [2]. Analysts have noted that a sustained move below $2.40 may be necessary to confirm a deeper correction toward $2.24 [1].

While some forecasts suggest a more bullish scenario, with XRP expected to trade between $2.95 and $4.73 in 2026 [3], these projections do not account for current bearish momentum or deteriorating on-chain fundamentals. Others, like analyst Winny, have warned that a break below the $2.40 level could trigger a significant decline, while a strong breakout above current levels might signal a rally toward $6 or more [4]. These predictions highlight the high volatility and uncertainty surrounding XRP’s near-term price action.

XRP’s earlier gains this year were driven by optimism following Ripple’s legal victory against the U.S. Securities and Exchange Commission and anticipation of a potential spot ETF [1]. However, these bullish catalysts appear to have been fully priced in, with the focus now shifting to weakening network fundamentals and broad market sentiment [1]. XRP remains under pressure, and its ability to retest and defend key resistance levels will be crucial in determining its path forward [1].

Source:

[1] XRP’s price downtrend could continue: Here’s 4 reasons why (https://cointelegraph.com/news/xrp-s-price-downtrend-could-continue-here-s-4-reasons-why?utm_source=rss_feed&utm_medium=rss%3Fsid%3Dd965a6811c5cf25b%26_t%3D175699111&utm_campaign=rss_partner_inbound)

[2] XRP Price Analysis Today: Bearish Signals Under $3 (https://www.bitrue.com/blog/xrp-price-analysis-today-below-3)

[3] XRP (XRP) Price Prediction 2025, 2026-2030 (https://coincodex.com/crypto/ripple/price-prediction/)

[4] Someone Eventually Sells as 94% of XRP Wallets Now in Profit but Here's Why Now Could Be Different (https://thecryptobasic.com/2025/08/19/someone-eventually-sells-as-94-of-xrp-wallets-now-in-profit-but-heres-why-now-could-be-different/)

[5] Bitcoin, Ethereum, XRP halt decline ahead of Fed meeting (https://www.mexc.com/es/news/crypto-today-bitcoin-ethereum-xrp-halt-decline-ahead-of-fed-meeting-minutes-release/67834)