XRP Price Drops Below $3, Bears Tighten Grip: What’s Next?

• XRP’s price fell below $3, dropping over 10% in a day.
• Trading volume surged 480%, reaching $15.81 billion amid selling pressure.
• Analysts warn a break below $2.75 could push XRP toward the $2 mark.

Ripple’s native token, XRP, has experienced a sharp decline in value. The XRP price has fallen below the $3 mark, raising concerns about its future trajectory.

The cryptocurrency market’s broader downturn, marked by over $613 Million in liquidations, has put additional pressure on the XRP crypto. This was further dropped by more than 10% in a single day.

XRP Faces Bearish Signals as Trading Volume Soars

XRP’s 24-hour trading volume spiked 480% to $15.81 billion, fueled by mounting selling pressure. While the surge reflects heightened market interest, technical indicators paint a bearish picture. This raised concerns about the token’s near-term trajectory.

Analysts, including Ali Martinez, have highlighted tightening Bollinger Bands on XRP’s daily chart before its latest drop. It is a setup often linked to looming volatility.

The XRP price has now faced stiff resistance at $3, a level it must clear to regain bullish momentum. A negative divergence in the volume profile and RSI was added to the picture. Falling trade volumes during recent highs indicated diminishing buyer strength.

Adding to the analysis, a recent report by Messari revealed that the market value of XRP crypto surged 246% in Q4. It outpaced Bitcoin, Ethereum, and Solana, whose combined market capitalization rose by 44%.

During the same period, the XRP price increased by 241% quarter on quarter. This resulted in a 1.6% increase in its circulating supply. This increase demonstrated XRP’s potential resilience despite its present bearish trend.

The $2.75 support level of Ripple has become a critical point. A breach below this threshold could push the price to $2, which some analysts view as a crucial equilibrium.

Will XRP Recover or Face Further Decline?

The XRP price was at a critical crossroads, hovering near the $2.75 support level. While the bearish sentiment persists, some investors interpret this dip as a potential buying opportunity.

Analysts, including EGRAG CRYPTO, have outlined possible recovery targets at $2.90 and $3.30 if buying pressure strengthens.

The recent price action indicated XRP’s struggle to maintain upward momentum within a rising channel. This channel previously defined its bullish trend.

The chart highlighted that the XRP crypto fell below the critical Fibonacci retracement level of $2.64 (0.618). This further signaled increased vulnerability to further downside.

If this support breaks, the XRP price could target the next central support zone near $1.95. This aligned with the base of the broader ascending trendline.

On the upside, regaining momentum above the $2.90-$3.00 range could reignite bullish sentiment. This might pave the way for an XRP price rally to its prior highs of $3.30. It could also move to a higher level, at $3.84, the 1.618 Fibonacci extension level.

However, the current rejection near $3 suggested that resistance remains strong. Despite the higher trading volume, the Accumulation/Distribution line indicated weak buying interest. At the same time, the RSI showed neutral momentum, highlighting market indecision.

For now, the $2.75 level is pivotal. A breakdown could open the door to more profound losses, potentially testing the $2 mark, while sustained recovery above $2.90 could restore optimism. The coming days will likely determine whether XRP can regain its footing or continue its downward trajectory.

Ripple CEO to Address Community on Jan. 28

Adding to the anticipation, Ripple CEO Brad Garlinghouse will speak to the XRP community on January 28 through X Spaces. The discussion will cover Ripple’s plans for 2025. Investors watch closely for announcements that influence XRP’s price or market perception.

The XRP price path forward is uncertain. The token’s price was currently caught between recovering lost ground and facing additional downside risks. Holding above $2.75 will be critical for stabilizing the token and regaining investor confidence.

Disclaimer

In this article, the views and opinions stated by the author or any people named are for informational purposes only, and they don’t establish the investment, financial, or any other advice. Trading or investing in cryptocurrency assets comes with a risk of financial loss.