XRP’s price took a nosedive today, tumbling 8% from its recent high of $3.17 to touch a low of $2.94, amid a flurry of sell-offs that overwhelmed the market. The most dramatic shift occurred just after midnight on August 1, when XRP plunged 2.7% in a single hour, with trading volumes soaring to 259.21 million units—almost quadruple its usual 24-hour average.
Market Dynamics and Whale Activity
Here’s the catch: despite this apparent weakness, some intriguing signals emerged during the aftermath. As XRP clawed its way back to $2.98, the initial frenzy of trading volume waned, pointing to possible intervention by institutional players who might have taken advantage of the dip to bolster their holdings at key support zones. This aligns with previous patterns observed during significant market movements, as detailed in XRP Price at Risk of Falling Below $3 After $840 Million Sell-Off.
Yet, the whale activity surrounding XRP is a mixed bag. On-chain data reveals that large holders have been offloading around $28 million worth of XRP daily over the past 90 days. This sustained distribution paints a picture of ongoing selling pressure from institutional and early adopters. However, it’s not all doom and gloom—over 310 million XRP tokens, valued at nearly $1 billion, have been scooped up during the recent market correction. This uptick in accumulation, alongside a noticeable drop in exchange balances, suggests a robust inflow of capital.
Institutional Interest and Ripple’s Swell Conference
What’s interesting is the growing institutional intrigue despite these headwinds. Maxwell Stein, Director of Digital Assets at BlackRock, recently confirmed his attendance at Ripple’s Swell 2025 conference. This move might indicate that major players are aligning themselves with XRP, even in the face of current price adversities. This follows a broader trend in the crypto market, as seen in CRYPTO MARKET CAP TOPS $4T, XRP HITS ATH, ETH TREASURIES HEAT-UP.
This brings us to XRP’s recent price action. It reached a high of $3.17 at 10:00 UTC on July 31, only to slide to a low of $2.94 by midnight on August 1. This was followed by a slight recovery to $2.98 by the session’s close, hinting at a fragile, yet persistent, sentiment among traders.
Technical Analysis: Support and Resistance Levels
The $2.94 mark stood its ground during numerous intraday tests, thanks to aggressive buying that helped lift prices back to $2.98 by the end of the session. However, the resistance between $3.02 and $3.05 looms large, posing a significant hurdle unless fresh spot inflows emerge to propel prices upward.
Momentum indicators are still leaning towards a bearish outlook, though the volume recovery hints at a possible slowdown in the sell-off. Traders are especially keen to see if the $2.94–$2.95 level can hold as a reliable support in the short term, while also watching for any signs of renewed whale accumulation or a halt in the current distribution trends.
Forward-Looking Implications
As we look ahead, the reaction at the $3.00–$3.05 resistance zone will be crucial. This area has historically been a point of significant distribution. Furthermore, BlackRock’s positioning before the Ripple Swell 2025 conference could have far-reaching implications for future narratives around potential XRP ETFs.
The ongoing developments raise questions about the sustainability of the current trend. While some traders remain optimistic about a reversal, others are adopting a wait-and-see approach, cautious of the unpredictable nature of the crypto markets. As XRP navigates these turbulent waters, the coming weeks will be pivotal in determining whether it can reclaim its bullish momentum or face further declines.
Source
This article is based on: XRP Falls 8% Below $3 After Hitting Resistance, High-Volume Selloff Signals Weakness
Further Reading
Deepen your understanding with these related articles:
- NEAR Slides 4% After Hitting Resistance, Signaling Bearish Reversal
- Coinbase, JPMorgan Deal Signals Shift in Institutional Posture Towards Crypto: Bernstein
- Cantor’s $4B Bitcoin Play Signals Wall Street Momentum — What’s the Best Crypto to Buy Right Now?
Steve Gregory is a lawyer in the United States who specializes in licensing for cryptocurrency companies and products. Steve began his career as an attorney in 2015 but made the switch to working in cryptocurrency full time shortly after joining the original team at Gemini Trust Company, an early cryptocurrency exchange based in New York City. Steve then joined CEX.io and was able to launch their regulated US-based cryptocurrency. Steve then went on to become the CEO at currency.com when he ran for four years and was able to lead currency.com to being fully acquired in 2025.
