The cryptocurrency market has seen significant changes as XRP dropped over 8% below the psychological barrier of $3. This article examines the causes of the decline, support levels, and future predictions.
Reasons for XRP Drop
On August 1, XRP fell from an intraday high of $3.17 to a low of around $2.94, losing roughly 8% of its market value. Over 259 million tokens were moved in a single hour, leading to fear among short-term traders. As millions in leveraged long positions were liquidated, it accelerated the decline.
"Resistance at $3.17 was always going to be tough to break," said one expert. "The rejection at that level shows sellers still have control, at least in the short term."
Institutional Accumulation Data
Despite the sell-off, on-chain data provide a more nuanced picture. In recent weeks, significant holders have liquidated over $28 million in XRP every day, while institutional wallets have collected over 310 million tokens. This disparity indicates that long-term investors perceive value in present prices, despite ordinary traders’ fear.
Support and Resistance Levels
Following the drop, traders are intently monitoring two critical zones. Immediate support is at $2.94-$2.98, where buyers stepped in during the recent sell-off. Failure to maintain this level may lead to additional losses below $2.83 or possibly $2.65, corresponding to the 50-day exponential moving average (EMA).
XRP Price Table:
| Price Level | Significance | | --- | --- | | $3.17 | Strong resistance | | $2.98–2.94 | Immediate support | | $2.83 | Key secondary support | | $2.65 | Breakdown threshold |
Experts caution that reclaiming $3.00 is vital for the bulls. "A sustained move back above $3 could shift sentiment quickly," said another market strategist.
The latest XRP price analysis shows a market at a crossroads. Heavy selling has dropped prices below $3, but institutional stockpiling provides optimism for a rebound. Investors should keep a careful eye on the $2.94 support and $3.17 resistance levels, as they will likely determine XRP’s next major move.
