XRP’s wild ride continues as it grapples with the aftermath of a sharp 9% plunge in the 24-hour session ending August 3. The cryptocurrency, favored by many for its cross-border transaction capabilities, tumbled from $3.02 to a lowly $2.75 before clawing its way back to $2.82. This sudden drop was largely attributed to a surge in institutional selling pressure—an unsettling trend for investors who were just getting comfortable.
Institutional Pressure and Market Reactions
XRP’s sell-off peaked between 14:00 and 18:00 on August 2, with trading volumes swelling to a staggering 222.24 million, a massive 183% increase compared to the daily average. Such a pronounced spike in selling activity suggests that institutional investors are rebalancing their portfolios, possibly in response to jittery macroeconomic conditions. As one trader put it, “When the big players move, the ripples are felt across the pond.” This mirrors the broader market volatility, as detailed in Ripple’s XRP Tanks 8% in 24 Hours as Market Volatility Grips Traders.
That said, the asset managed to find a semblance of stability at $2.75, a zone now eyed by traders as a potential support level. But as always, the devil is in the details—recovery attempts faltered at $2.84, indicating that the road to redemption might be longer than some hope.
The Bigger Picture: Global Tensions and Liquidity Shifts
It’s not just XRP feeling the heat. The broader cryptocurrency market is navigating turbulent waters, stirred by global trade tensions and the ever-present specter of geopolitical risk. Recent tariff uncertainties have spooked investors, prompting a capital flight from altcoins towards more liquid assets. As central banks worldwide continue to tweak their policies, the ripple effects are palpable. This trend is also evident in other cryptocurrencies, as explored in Crypto Markets See Red as Solana, XRP, Dogecoin Extend Losses.
Analysts are keeping a keen eye on these macro dynamics. “The XRP sell-off is a microcosm of larger market anxieties,” noted a senior analyst at a leading financial consultancy. “With central banks in flux and geopolitical tensions simmering, traders are understandably skittish.”
Technical Tea Leaves: Reading the Signals
From a technical standpoint, XRP’s volume climax at $2.75—its most aggressive hourly decline—could signal capitulation, or perhaps a local bottoming. But with the final hour of trading witnessing a sharp drop in volume to around 650,000 per minute, compared to a peak of 3.7 million per minute, there’s a hint of buyer fatigue.
The $2.75–$2.76 range has emerged as a critical support level, yet any substantial upside appears capped near $2.84. Traders are now asking: Can XRP maintain its footing above this support and build a base for recovery? Or does a failure to reclaim $2.85 suggest further downside?
What Lies Ahead for XRP?
Going forward, traders will be scrutinizing institutional inflows and exchange outflows, eager for signs of accumulation. The CD20 Index’s volatility, coupled with macro headlines—particularly those concerning U.S.-China trade relations—will also be pivotal.
In the world of cryptocurrencies, uncertainty is a given. And as XRP navigates these choppy waters, the question remains: Can it weather the storm and emerge stronger on the other side? Only time will tell, but for now, all eyes are glued to the charts, waiting for the next move in this high-stakes game.
Source
This article is based on: What Next For XRP as $2.75 Level Holds After Sharp Decline From $3
Further Reading
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- CRYPTO MARKET CAP TOPS $4T, XRP HITS ATH, ETH TREASURIES HEAT-UP
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.
