XRP News Today: XRP Falls Below $3 Support Level Amid Broader Market Weakness and Whale Activity

XRP has recently fallen below the crucial $3 support level, sparking concerns among traders and analysts about the possibility of a deeper correction. The altcoin, which had maintained a strong position above this level for an extended period, is now trading at $2.89, marking a 2% decline over the past 24 hours. This sharp drop has been attributed to broader market weakness, with Bitcoin also experiencing a pullback below $114,000, contributing to a more bearish sentiment across the crypto landscape [2].

The recent price action has been influenced by whale activity, most notably a $175 million transfer by Ripple co-founder Chris Larsen. This has raised speculation about institutional repositioning or profit-taking following the recent rally [1]. Technically, XRP is now trapped below a descending trendline on the 4-hour chart and beneath the 50-period SMA at $3.08, which now acts as resistance after the breakdown from $2.93 [1]. Multiple bearish candle patterns, including an engulfing formation, suggest that sellers are currently in control.

The $3 level is a psychological key battleground, and its breach has shaken bullish confidence. Traders are now closely watching for signs of reversal or further breakdown. The RSI has dipped into oversold territory but has only partially rebounded, remaining below 50. The current test of the $2.93–$2.94 zone, previously a support turned resistance, is a critical point for determining the near-term direction of the asset [1].

If XRP fails to reclaim this level with conviction, the bias remains bearish. The next key support levels to watch are $2.73 and $2.61. A rejection at $2.94 could provide a short-term entry point for bearish traders, with a stop loss placed just above $3.08. A clean close above $3.10 would signal a potential reversal in sentiment, potentially pushing the price toward $3.18 and beyond [1].

Analysts are also noting the broader implications of XRP’s decline. A 30% drop to as low as $2 has been flagged as a worst-case scenario if key support levels fail. This comes amid ongoing macroeconomic concerns and geopolitical tensions, which have further pressured the asset. XRP’s inability to maintain momentum above key levels has led to increased volatility, raising questions about whether the correction is a temporary setback or part of a larger bearish trend [4].

The 95% approval odds for an XRP ETF have introduced a potential catalyst for the asset, but the immediate outlook remains cautious. While some analysts remain optimistic about XRP’s long-term prospects, the current environment demands careful risk management, particularly given the interconnected performance of major cryptocurrencies like Ethereum and Solana [1].

Source: [1] https://coinpedia.org/news/xrp-price-prediction-turns-bearish-30-fall-to-2-now-on-the-table/

[2] https://www.facebook.com/manuel.guevarra.369210/photos/eric-trump-flashes-buy-the-dip-sign-as-bitcoin-and-ethereum-price-crashamid-fall/735578109355400/

[3] https://cryptonews.com/tags/price-prediction/

[4] https://www.cryptotimes.io/all-news/