XRP under pressure: what caused the sharp drop?
The XRP price took a significant hit last week, dropping by as much as 13.5% — especially notable compared to Bitcoin (-2.25%) and Ethereum (-0.50%) over the same period. So, what exactly is happening with Ripple‘s native token — and is this a cause for concern or a potential buying opportunity?
1. Large XRP transfers by co-founder Chris Larsen
In mid-July, when XRP peaked around $3.60, Ripple co-founder Chris Larsen reportedly moved approximately $175 million worth of XRP to various addresses, with around $140 million seemingly directed to exchanges. When someone with such a large holding moves funds to exchanges, the market tends to react with concern. Many investors interpreted this as a signal to sell and rushed to exit, putting additional pressure on the price. Even if those tokens aren‘t sold immediately, the transaction itself can create a wave of uncertainty.
2. Over 90% of XRP holders in profit
On-chain data showed that 93.24% of the circulating XRP supply was in profit at the recent highs — meaning most wallets were sitting on gains. When a large portion of holders are in the green, a so-called “profit-taking overhang” can emerge, leading to widespread selling and price correction as traders lock in gains.
3. Technical correction towards realised price levels
Many traders had accumulated XRP in the $2.30 to $2.80 range. As the price dipped to around $3.13, it approached the average entry cost of these investors — triggering automated sell orders and panic reactions. This range is often referred to as the “realised price band”, essentially a zone where many market participants initially bought in. When price revisits that area, some may choose to exit at break-even, especially after a rapid climb.
That breakout scenario could materialise if there is positive news in the ongoing legal battle between Ripple and the SEC. The outcome of that case — whether favourable or not — has had a significant impact on XRP‘s price action in recent years. At the same time, if the broader market (Bitcoin, Ethereum) continues to weaken, it will be difficult for XRP to move up independently.
Disclaimer: This is not financial advice. Always do your own research and consult a financial advisor if needed.
What went wrong for XRP?
Several factors came into play over the past week that contributed to XRP‘s sharp decline.1. Large XRP transfers by co-founder Chris Larsen
In mid-July, when XRP peaked around $3.60, Ripple co-founder Chris Larsen reportedly moved approximately $175 million worth of XRP to various addresses, with around $140 million seemingly directed to exchanges. When someone with such a large holding moves funds to exchanges, the market tends to react with concern. Many investors interpreted this as a signal to sell and rushed to exit, putting additional pressure on the price. Even if those tokens aren‘t sold immediately, the transaction itself can create a wave of uncertainty.
2. Over 90% of XRP holders in profit
On-chain data showed that 93.24% of the circulating XRP supply was in profit at the recent highs — meaning most wallets were sitting on gains. When a large portion of holders are in the green, a so-called “profit-taking overhang” can emerge, leading to widespread selling and price correction as traders lock in gains.
3. Technical correction towards realised price levels
Many traders had accumulated XRP in the $2.30 to $2.80 range. As the price dipped to around $3.13, it approached the average entry cost of these investors — triggering automated sell orders and panic reactions. This range is often referred to as the “realised price band”, essentially a zone where many market participants initially bought in. When price revisits that area, some may choose to exit at break-even, especially after a rapid climb.
Where does XRP stand now?
XRP has dropped by 10% to 13.5% over the past seven days. At the time of writing, it is trading between $3.08 and $3.13, with the critical support level at $3.00 still holding — for now. For a strong recovery, XRP would need to break through resistance around $3.40. A breakout above $3.40 could technically open the door toward the $3.65 to $3.80 zone, where historical resistance levels from previous rallies can be found. On the downside, $3.00 remains a key level: if XRP falls below it, the next potential support could be found around $2.80.That breakout scenario could materialise if there is positive news in the ongoing legal battle between Ripple and the SEC. The outcome of that case — whether favourable or not — has had a significant impact on XRP‘s price action in recent years. At the same time, if the broader market (Bitcoin, Ethereum) continues to weaken, it will be difficult for XRP to move up independently.
What does this mean for the XRP price outlook?
Analysts view the current dip as a healthy correction following a strong price rally. For investors, the key is to keep a close eye on the $3.00 support level. If that breaks, sentiment may quickly shift. But if the price remains stable — or even recovers towards $3.40 — this may simply turn out to be a short-term correction within a broader uptrend and could align with the mid-term XRP price outlook.Disclaimer: This is not financial advice. Always do your own research and consult a financial advisor if needed.