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? 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.