Will XRP Breach the $2.48 Support Level?

XRP recently slipped beneath the crucial $3 threshold to $2.96 by August 6, 2025, drawing substantial attention within the cryptocurrency community. This decline resulted in a significant reduction in its market capitalization by approximately $5 billion, following a 2.5% dip over the past day. Experts suggest that technical indicators are hinting at increased sell pressure, compounded by the selling actions of prominent wallet holders.

What Are the Implications of XRP’s Price Drop?

Dropping below the $3 support level has subjected XRP to heightened selling pressure. This initial downturn was exacerbated by a surge in high-volume sell orders, highlighting the currency’s vulnerability in the short term. Though support seems firm around $2.80, it might serve as a temporary pause for XRP in its downward trajectory.

What Is the Role of Technical Indicators in XRP’s Downtrend?

The Tom DeMark TD Sequential indicator, a renowned analytical tool, flashed a sell signal at $3.60, commonly preceding broader declines. As observed by analyst Ali Martinez, the development of a death cross in the MVRV ratio further signals sustained bearish trends. Blockchain data highlighted a significant whale action, where 720 million XRP was jettisoned by major investors, intensifying the market sell-off.

The real bottom could lie within the $2.48 – $2.40 range, stated Martinez, indicating possible points for market re-entry.

Adding to this, if the Relative Strength Index (RSI) drops below 45, it could speculate further downward pushes. A closure below the lower Bollinger Band would amplify losses, while the MACD line under the signal line foresees no immediate upward momentum.

– XRP falls below $3, marking a $5 billion market cap drop.

– Strong whale activity with 720 million XRP sold.

– Potential price support rests between $2.48 – $2.40.

XRP’s future remains uncertain with its recent slip below the pivotal $3 mark. The consistent bearish indicators, combined with the continued sell-offs by large investors, signal challenging times ahead for the cryptocurrency. Observers and investors alike are keenly watching to see if XRP will find a firm footing or continue its descent into uncharted territory.