Okay, maybe not all hell will break loose if XRP (XRP-USD) falls under $3, but it could spark the kind of selling that makes traders very nervous. The token slipped 5% on Monday and now trades at $2.97. With bulls on the back foot, the next few sessions could decide whether this is just a stumble or the start of something bigger.
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Bulls Struggle to Defend the $3 XRP Price
The $3 mark has always been more than just a number for XRP. The last time it closed below that level with heavy volume was back in January, and what followed was a brutal 50% drop that took prices to $1.61 by April. That history explains why traders are watching so closely now. If the level gives way again, it may not stop at a small dip.
The first zone of support sits around the 50-day moving average at $2.94 and the local low of $2.72 from earlier this month. If those levels fail, the 100-day and 200-day averages between $2.60 and $2.45 are next. A break beneath those floors could drag XRP all the way down to $2.24, which was the starting point of July’s rally.
XRP Charts Point to More Downside
Technical patterns are not offering much comfort. XRP has slipped below a symmetrical triangle on the daily chart, which often signals more weakness ahead. Unless the price can bounce back above $3, the setup points to a possible fall toward $2.25. That would wipe out about a quarter of the token’s value from where it stands today.
Momentum has also shifted. The relative strength index has dropped from 61 to 45 in just a week, showing that sellers have taken control while buyers are losing interest.
Traders Start Locking In Profits
On-chain data backs up the warning signs. Over the past 90 days, cumulative volume shows more selling than buying. This flip happened right after XRP hit multi-year highs above $3.66 in July. Now, many traders are booking profits instead of doubling down.
History suggests that when profit-taking ramps up and demand fades, corrections often run deeper than expected. That is the risk bulls are facing now.
Even after this pullback, about 94% of XRP’s supply is still in profit. That sounds like good news, but it has also lined up with market tops in the past. Bulls need to reclaim $3 quickly to steady the ship. Otherwise, a deeper slide into the $2 range could be just around the corner.
At the time of writing, XRP is sitting at $2.9950.
