XRP News Today: XRP Plummets 10.3% to $3.11 as $3.10 Support Tested After Failed $3.66 Break

Ripple’s XRP token faces a pivotal moment as its price plummeted 10.3% in 24 hours, settling at $3.11 with critical $3.10 support under pressure following a failed attempt to breach the $3.66 resistance level [1]. The decline has intensified scrutiny on technical and on-chain metrics, with large whale activity and regulatory developments adding layers of complexity to XRP’s near-term outlook.

Whale accumulation has painted a mixed picture for market sentiment. Over 280 million XRP tokens were added to large holders’ portfolios in ten days, typically signaling institutional confidence in long-term value [1]. However, a recent transfer of 16.8 million XRP (valued at over $54 million) to Coinbase by an unknown wallet has raised concerns about potential selling pressure. Such large inflows into exchanges often precede liquidation efforts, complicating the bullish narrative [1].

The $3.10 support level has become a focal point for technical analysis. Previously acting as resistance, this price point now serves as a crucial barrier to prevent further declines. A breakdown below $3.10 could trigger a cascade toward $2.63, while a successful defense may stabilize the asset’s structure. The Moving Average Convergence Divergence (MACD) has turned bearish, reflecting waning momentum, and the on-chain MVRV Z-score of 3.49 suggests a temporary easing of profit-taking risks [1].

Network activity metrics, however, reveal troubling trends. Transaction counts and network growth collapsed on July 24, with daily transactions dropping to 286,000 and network growth plummeting to 1,899—a stark contrast to mid-July peaks exceeding 1 million transactions [2]. This sharp decline in user engagement undermines the sustainability of XRP’s recent rally. The Network Value to Transactions (NVT) ratio remains elevated at 699, indicating a potential overvaluation relative to on-chain utility. Historically, such imbalances have preceded corrections or extended consolidation phases [2].

Amid the bearish on-chain signals, technical analysis offers a glimmer of hope. A Cup and Saucer pattern is forming on XRP’s price chart, with the asset creating higher lows after two rejections at the $3.65 resistance level [1]. Analysts, including Cryptoinsightuk, note that this continuation pattern is more likely to result in a breakout than a breakdown, provided the $3.10 support holds [1]. A successful breakout above $3.65 could propel XRP toward new all-time highs beyond $3.8.

Regulatory developments further complicate the landscape. The SEC’s approval of the Bitwise 10 Crypto Index Fund, which includes XRP, was followed by a stay for review, creating uncertainty for market participants [1]. This follows the approval of the first XRP ETF and Grayscale’s application to convert its Digital Large Cap Fund into an ETF structure. While these moves could enhance XRP’s institutional adoption, the regulatory ambiguity remains a headwind.

The divergence between whale accumulation and collapsing network metrics highlights the asset’s fragility. For bulls to maintain upward momentum, the $3.10 support must hold, and network activity must rebound to justify current valuations. The coming sessions will be critical in determining whether technical resilience and regulatory clarity can align to sustain XRP’s rally.

Sources:

[1] [XRP Price: Network Activity Collapses as Whales Accumulate](https://coincentral.com/xrp-price-network-activity-collapses-as-whales-accumulate-whats-next-for-xrp/)

[2] [XRP’s on-chain activity collapses – Can the price hold at ...](https://ambcrypto.com/xrps-on-chain-activity-collapses-can-the-price-hold-at-3-10/)