XRP (XRP-USD) has pulled back hard. After racing to $3.66 last week, its highest level in years, the token has now lost nearly 20%. That kind of correction isn’t exactly surprising. On Thursday alone, it dropped 12% and is now trading just above $3.10. Traders are waiting to see whether a possible retest of $3 will take place, especially as this price has become the key level for XRP to hold.
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Traders Dump, Liquidations Follow
The trouble started when XRP failed to break past the $3.66 mark. That was the moment bulls lost steam. As momentum faded, traders who bought late started taking profits, and that led to a cascade of forced liquidations. In total, $113 million worth of XRP long positions were wiped out in just 24 hours.
It wasn’t just XRP. Nearly $1 billion in crypto positions were liquidated across the market, with Ethereum and Bitcoin seeing major losses too. But XRP was hit especially hard. The sell-off erased some of the hype that had built around its multi-year breakout.
Can Bulls Hold the Line at $3?
Right now, the $3 level is acting as the make-or-break point. It’s also where XRP’s 20-day moving average sits, a key technical support that often signals whether a rally has room to continue.
If the price bounces off $3 with strong buying volume, that’s a sign bulls are still in control. From there, XRP could make another run toward $3.66 and possibly aim for $4 or higher. But if $3 doesn’t hold, the next likely stop is $2.80. Some analysts are even pointing to $2.60 as a downside target.
Analysts Still See Upside in XRP
Not everyone is panicking. Market watchers like CryptoData say this flush could actually help reset the market and build a stronger base for the next leg higher. “Volatility like this can mark a bottom,” the analyst posted on X.
Others agree. Analyst Egrag Crypto says buyers are already stepping back in aggressively. “Don’t let fear take over now,” he wrote. “Stay strong and hold your position.” Another trader, XRPunkie, called this drop a “healthy correction” and said it’s a normal part of crypto cycles.
The most optimistic targets are still on the table. Some bulls are holding out for $10 to $15 by year-end, assuming the broader crypto rally continues. Bitpanda’s deputy CEO, Lukas Enzersdorfer-Konrad, recently said XRP is still on track to retest its all-time high from 2018, especially if capital keeps flowing from Bitcoin into altcoins.
XRP had a huge run. Now it’s correcting. This kind of pullback is common after sharp rallies. The key is whether bulls step in again at $3. If they do, this may just be a breather before the next push higher. If they don’t, XRP’s gains could unwind even further.
At the time of writing, XRP is sitting at $3.1181.
