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Key Takeaways:
- XRP’s RSI dropped to 29, confirming oversold and bearish conditions.
- The $3.20 level triggered liquidations, exposing a bull trap setup.
- Whale-led profit-taking, not panic selling, is behind the current downturn.
Ripple’s XRP has slipped below the crucial $3 threshold, with mounting selling pressure and weakening demand signaling potential for further losses. Despite brief attempts to reclaim higher ground, indicators show that bearish momentum has taken over.
Bearish Indicators Confirm Trend Reversal
XRP’s decline began after it failed to push past the $3.15 resistance. Technical signals quickly turned negative—most notably, the Relative Strength Index (RSI) plummeted to 29, indicating oversold conditions and increased bearish pressure.
The On-Balance Volume (OBV) also saw a sharp drop, revealing reduced cumulative buying interest. These metrics suggest that sellers are firmly in control, with XRP now at risk of sliding below $2.90 if demand doesn’t recover soon.
$3.20 Bull Trap Triggers Liquidations
Binance liquidation data highlights a significant concentration of long positions near the $3.20 zone. This level acted as a bull trap, drawing in leveraged traders before a rapid reversal liquidated positions.
As the price dropped below $3, no major liquidation support zones were found, suggesting limited buyer strength in the current range.
Strategic Profit-Taking Behind the Drop
Despite the selloff, there’s little sign of panic. On-chain data from CryptoQuant shows that XRP inflows to Binance spiked as prices topped $3.40, indicating calculated profit-taking by whales and large holders rather than fear-driven exits.
Also Read: Reasons XRP Could Plunge Below $3 — And What Might Stop It
While recent inflows haven’t matched the $660 million surge seen in May, they remain significant enough to suppress bullish attempts and stall price recovery.
Outlook: Recovery Depends on Demand Shift
XRP’s short-term future hinges on whether buyer interest can return. For now, momentum is bearish, support levels look fragile, and large holders appear content to exit at local highs. Without renewed demand, XRP may remain under pressure in the days ahead.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses
I’m a crypto enthusiast with a background in finance. I’m fascinated by the potential of crypto to disrupt traditional financial systems. I’m always on the lookout for new and innovative projects in the space. I believe that crypto has the potential to create a more equitable and inclusive financial system.
