XRP News Today: XRP Falls Below $3 on Profit-Taking and Heavy Selling Pressure

XRP dropped below $3 on August 1, 2025, following a failed breakout attempt near $3.15 and intensifying selling pressure from both retail and large holders. The decline is characterized as a controlled correction driven by profit-taking, rather than panic, with on-chain data showing increased inflows to exchanges such as Binance [1]. This behavior indicates holders are liquidating gains amid a weakening price trend, signaling a potential continuation of the downward movement without renewed buying interest [2].

Technical indicators reinforce the bearish momentum. The Relative Strength Index (RSI) fell to 29, entering oversold territory, while the On-Balance Volume (OBV) showed a sharp decline, reflecting aggressive selling pressure and diminishing cumulative buying interest [3]. These signals suggest that the short-term support level near $2.90 could face further challenges if demand does not return promptly [4].

The breakdown was exacerbated by a bull trap observed on Binance’s liquidation heatmap. A dense cluster of liquidations was recorded just above $3.20, indicating that many leveraged long positions were wiped out during the price reversal [5]. This forced sell-off triggered a cascade of exits, further accelerating the decline. The absence of significant liquidation support below $3 highlights weak bullish defense in the current price range [6].

According to on-chain metrics from CoinGlass and Cryptoquant, XRP holders are moving coins to exchanges to realize profits, rather than panic selling [7]. This controlled market behavior contrasts with a typical capitulation event, offering a clearer picture of the ongoing market dynamics. Analysts note that the current scenario represents a market correction rather than a systemic collapse, but caution that without renewed buying interest, the downward trajectory could persist [8].

The price reversal and subsequent decline underscore the importance of monitoring both technical and on-chain signals for potential shifts in sentiment. As the cryptocurrency market remains sensitive to macroeconomic factors and regulatory developments, investors are advised to watch for renewed demand and key support levels in the coming weeks [9].

[1] https://en.coinotag.com/xrp-falls-below-3-amid-profit-taking-and-selling-pressure-further-declines-possible-without-renewed-demand/