XRP News Today: XRP Falls Below $3 as Crypto Market Tumbles 4.59% on Strong U.S. Data

XRP slid below $3 on August 25, extending a broad crypto market downturn driven by waning bullish momentum and shifting macroeconomic expectations. The token closed at $2.94, down 4.59 percent within a 24-hour span, as investors recalibrated their exposure in response to stronger-than-expected U.S. economic data. Producer Price Index and retail sales figures released earlier in the week exceeded forecasts, reinforcing the likelihood of delayed Federal Reserve rate cuts and prompting a shift in risk sentiment [1][2].

The broader market mirrored the decline, with total crypto market capitalization shrinking by $71 billion to $3.85 trillion. Bitcoin fell 1.9 percent to $115,409, while Ethereum dropped 3 percent to $3,200. The coordinated sell-off highlighted growing caution among investors, particularly in a market historically sensitive to interest rate cycles [1].

Technical indicators also signaled bearish pressure for XRP. The token dipped below its 20-day simple moving average at $3.09 and currently faces resistance near $3.36 and support at $2.81. The Relative Strength Index (RSI) fell to 44.27, dropping below the neutral 50 level and indicating weakening momentum. Analysts have warned that if the $3 threshold is not regained, the next key support lies at $2.81, with significant historical accumulation in that range [2][6].

Large whale activity on major exchanges, including Binance, has intensified the downward pressure. Approximately $464.7 million in positions were liquidated across the crypto market in the past 24 hours, with long positions bearing the brunt of the losses [6]. XRP, like many altcoins, faced a sharp correction, hitting an intraday low of $2.96 and trading near $2.98. With 94 percent of XRP holders in profit, analysts have raised concerns about further profit-taking and potential price erosion [7].

While some altcoins bucked the trend—such as Chainlink, which gained 1.83 percent and showed a strong uptrend—others like Dogecoin dropped 4 percent amid resurfacing network concerns. The Altseason Index climbed to 53 percent, suggesting improved performance among altcoins relative to Bitcoin, whose dominance fell to 58.9 percent. The uneven response highlighted the fragmented nature of the market correction [1].

Looking ahead, the Jackson Hole symposium later in the week is expected to provide critical insight into the Fed’s policy trajectory, which could influence investor sentiment and potentially stabilize or deepen the downturn for XRP and the broader market [1]. Analysts remain cautious, with some forecasting a potential decline to as low as $2.60 if the current bearish momentum continues [2]. For now, market participants are closely watching key resistance levels and macroeconomic cues to gauge the next move in the XRP price action [2][6].

Sources:

[1] Why XRP Is Going Down? XRP Price Drops 5% as Bitcoin and Ethereum Retreat Amid Heavy Crypto Profit-Taking (https://www.financemagnates.com/trending/why-xrp-is-going-down-xrp-price-drops-5-as-bitcoin-and-ethereum-retreat-amid-heavy-crypto-profit-taking/)

[2] XRP Could Crash to $2, Claims Analyst amid Price Plunge (https://www.coinspeaker.com/xrp-price-drops-below-3-whale-selloff/)

[6] XRP Slips Below $3 as Nearly $500 Million Worth of Crypto Gets Liquidated (https://u.today/xrp-slips-below-3-as-nearly-500-million-worth-of-crypto-gets-liquidated)

[7] XRP at Risk of 20% Drop as 94% of Holders Are in Profit (https://coincentral.com/xrp-xrp-price-prediction-recovery-stalls-as-bulls-fight-to-hold-3-key-support/)