XRP Price Loses Crucial Support At $3, Can Bulls Manage A Bounce Back?

Ripple’s native cryptocurrency XRP has once again come under selling pressure, losing the crucial support at $3 once again. Following the rejection at $3.50 last week, the XRP price has corrected more than 15% since then. Traders are now wondering whether the bulls can hold above the support, or if there’s more downside left ahead.

XRP Price At a Make-or-Break Junction

Popular crypto analyst EGRAG Crypto stated that the XRP price is oscillating in the macro range between $2.65-$3.25. He added that these macro levels would be crucial to watch for aid the short-term volatility.

According to the analysis, if XRP closes below $2.90 on the 4-hour chart with a full-body candle, it could complete a five-wave structure, potentially pulling the price down to $2.65. On the upside, reclaiming the $3 mark would signal renewed bullish momentum, with subsequent milestones at $3.13 and $3.20. Overcoming these resistances would be crucial for a sustained XRP price rally.

A breakout above $3.45 could set the stage for a new all-time high. Analyst EGRAG Crypto stated that $3.65 is the key level to watch for a major bullish confirmation.

Amid the current weakness in the Ripple cryptocurrency, another crypto analyst, Ali Martinez stated that the XRP price could further slip all the way to $2 if bulls fail to take charge. Although the Ripple lawsuit settlement news provided a major boost, the bulls have failed to keep the momentum going.

XRP Price Under Strong Selling Pressure Amid Profit Booking

As per the on-chain data, with Ripple cryptocurrency trading above $3, a staggering 94% of investors are currently sitting on a profit, as per Glassnode data. This comes as XRP has rallied by a whopping 500% on the yearly chart, from the lows of $0.40 to the highs of $3.11.

The widespread profitability highlights significant investor gains, which often increases the likelihood of profit-taking. Back in early 2018, more than 90% of XRP holders were in profit when the price peaked around $3.30, followed by a sharp 95% decline. A similar trend occurred in April 2021, when profitability above 90% led to an 85% drop from highs near $1.95.

Furthermore, as per the CME Group Economic Research report, XRP has exhibited weaker performance than other major cryptocurrencies. The analysis measured one-year daily return correlations with Bitcoin, Ethereum, and Solana.

XRP ETF Approval Chances Drop Under 80%

The U.S. Securities and Exchange Commission (SEC) is set to deliver rulings on eight pending XRP spot ETF applications between October 18 and October 25, 2025. The XRP community has long been awaiting the regulatory greenlight for an XRP ETF. This would put the Ripple cryptocurrency at par with Bitcoin and Ethereum, which have seen strong institutional demand through spot ETFs.

Filings show major asset managers, including Grayscale, 21Shares, Bitwise, WisdomTree, Franklin Templeton, and CoinShares, vying to launch the first XRP spot exchange-traded fund. As per the Polymarket data, the odds of approval for an XRP by the end of this year have dropped under 80%.

If approved, these ETFs would align XRP more closely with Bitcoin and Ethereum, which already have spot ETFs approved earlier this cycle. Analysts suggest the move could significantly broaden XRP’s investor base, increase liquidity, and attract substantial institutional inflows.