News XRP Price Update

XRP Faces Potential Sell-Off if Price Drops Below $3 Mark

by Crypto Hobby

Updated September 01, 2025

XRP coin and pile of cash, financial downturn concept.

XRP is currently trading at $2.97, having experienced a 5% decline on Monday. Analysts are closely monitoring the $3 price level, as a sustained break below this threshold could trigger significant selling pressure and a potential sharp downturn for the cryptocurrency. The coming trading sessions will be crucial in determining the short-term trajectory of XRP.

Key Takeaways

XRP's price is at a critical juncture, with the $3 level acting as a key support.
A breach below $3 could lead to a substantial price drop, mirroring a similar event in January.
Technical indicators and on-chain data suggest a bearish sentiment, with sellers gaining momentum.

Bulls Struggle to Defend the $3 XRP Price

The $3 price point holds significant psychological and technical importance for XRP. Historically, a close below this level in January was followed by a dramatic 50% price correction, plummeting to $1.61 by April. This precedent has traders on edge as XRP hovers just below this critical support.

Immediate support levels to watch are the 50-day moving average around $2.94 and the recent low of $2.72. Should these fail, attention will shift to the 100-day and 200-day moving averages, situated between $2.60 and $2.45. A breakdown below these could see XRP retrace its steps to the $2.24 level, the starting point of its July rally.

XRP Charts Point to More Downside

Technical analysis indicates a bearish outlook for XRP. The cryptocurrency has recently broken below a symmetrical triangle pattern on its daily chart, a formation that typically signals further weakness. This pattern suggests a potential decline towards $2.25, which would represent a 25% loss from its current trading price.

Furthermore, momentum indicators are shifting bearishly. The relative strength index (RSI) has fallen from 61 to 45 within a week, indicating that sellers are overpowering buyers, who appear to be losing interest.

Traders Start Locking In Profits

On-chain data corroborates the technical warnings. Over the last 90 days, cumulative trading volume shows a trend of more selling than buying, a shift that occurred shortly after XRP reached multi-year highs above $3.66 in July. Many traders are now opting to secure their profits rather than increasing their holdings.

Historical patterns suggest that periods of increased profit-taking coupled with waning demand often lead to corrections that are deeper than initially anticipated. This presents a significant risk for XRP bulls. Despite the recent pullback, approximately 94% of XRP's supply remains in profit. While this might seem positive, it has also coincided with market tops in the past. For XRP to stabilize, bulls must successfully reclaim the $3 level quickly; otherwise, a descent into the $2 range appears increasingly probable.

As of this report, XRP is trading at approximately $2.9950.