XRP is facing mounting bearish pressure after dropping below the critical $3 level, with analysts warning of deeper declines amid negative technical signals and large whale selloffs.
Key Takeaways
- 1XRP has dropped to $2.95, down 2.8% in the last 24 hours and nearly 19% off its July 18 high of $3.65
- 2Whales offloaded over 720 million XRP, intensifying downward momentum
- 3Analysts highlight a sell signal and MVRV death cross, both historically tied to further declines
- 4Support levels to watch include $2.80 and $2.40, with $3 now acting as resistance
What Happened?
XRP has fallen below a key psychological support of $3, now trading at $2.95. The drop comes amid a slew of bearish signals, including a Tom DeMark Sequential sell signal, an MVRV death cross, and a massive whale selloff totaling over 720 million XRP. Analysts say the token could dip further if it fails to hold support at $2.80.
Whale Activity and Technical Indicators Turn Bearish
Ali Martinez, a widely followed crypto analyst, flagged a sell signal on XRP’s 3-day chart using the Tom DeMark Sequential indicator. This signal emerged near XRP’s recent high of $3.60 and has so far aligned with the ongoing decline.
At the same time, whale wallets unloaded more than 720 million XRP tokens, signalling either heavy profit-taking or lack of confidence in short-term price action.
Adding fuel to the bearish fire is the MVRV death cross. This metric, comparing market value to realized value, suggests that traders are now holding smaller unrealized profits. Historically, this cross has preceded downward moves across various cryptocurrencies.
The MVRV ratio flashed a death cross for $XRP, suggesting a steeper correction could be underway! pic.twitter.com/DDTuDjj6rE
,Ali (@ali_charts) August 3, 2025
Price Levels to Watch: $2.80 and $2.40
XRP’s recent price behavior suggests growing volatility. It’s now trading near the lower Bollinger Band and below short-term moving averages, like the 10-day and 20-day, which are now acting as resistance.
Key technicals:
- RSI is at 48.8 and trending lower, nearing the 45 level that could confirm bearish control
- MACD has turned negative, with the signal line and histogram pointing to continued downward pressure
- Volume spikes have accompanied the selloff, reinforcing the bearish trend
Support Zones:
- $2.80: Currently acting as interim support
- $2.48 to $2.40: Analysts see this zone as the more likely stronghold if XRP continues to drop
If XRP fails to hold above $2.80, a swift move to $2.48 or even $2.40 is likely. On the upside, if XRP can reclaim the $3 level and rally toward $3.20 to $3.30, bullish sentiment might return.
Market Sentiment Remains Divided
Despite the downturn, 88% of CoinMarketCap users remain bullish, expecting a rebound. Still, the technical indicators paint a more cautious picture.
- XRP has lost over $5 billion in market cap in just 24 hours
- Daily trading volume stands at $5.45 billion
- XRP remains up 29% over the past month, although recent losses have erased a significant portion of gains
CoinLaw’s Takeaway
I think XRP is in a tricky spot right now. The $3 mark was a key psychological level, and losing it while whales are dumping tokens and bearish signals flash red is not a great combo. Sure, long-term trends haven’t totally broken yet, but we’re skating on thin ice here. If XRP doesn’t hold $2.80, we could see a quick plunge to the $2.40s. That said, if bulls show up and reclaim $3 fast, this might just be a temporary shakeout. I’m watching volume and RSI closely. Stay alert.
