XRP Price Dips 8% Below $3 After Encountering Resistance: What’s Next for Ripple?
By Shaurya Malwa | Updated August 1, 2025, 3:22 a.m. UTC
XRP, the digital asset native to Ripple’s payment network, has experienced a notable decline, dropping 8% in the last 24 hours. The price fell from a session high of $3.17 to a low near $2.94 after encountering strong resistance, triggering intensified selling pressures that culminated in a sharp dip around midnight UTC on August 1. ### Sharp Selloff Followed by Partial Recovery
The most dramatic single-hour drop occurred during the midnight trading window when XRP shed 2.7%, with a surge of 259.21 million units traded—almost four times its typical 24-hour volume average of approximately 64.9 million units. This high-volume selloff signaled clear market weakness, eclipsing earlier gains.
Despite the downturn, XRP managed a modest rebound, climbing back slightly to close near $2.98. This bounce was accompanied by diminished volume, suggesting institutional buyers absorbed much of the excess supply, particularly near critical support levels around $2.94. ### Whale Activity Shows Mixed Signals
On-chain data reveals that XRP’s large holders and whales continue to influence price dynamics amid the correction:
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Distribution Trends: Over the past 90 days, large holders have liquidated XRP at a rate averaging $28 million daily, reflecting ongoing profit-taking or risk reduction among early investors and institutions.
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Accumulation During Correction: In contrast to heavy sell pressure, more than 310 million XRP tokens—worth close to $1 billion—have accumulated during the recent price dip. This was accompanied by a sharp reduction in supply on exchanges, a typical indicator of strong capital inflows and confidence from some market participants.
Adding to the complexity, Maxwell Stein, Director of Digital Assets at BlackRock, has confirmed BlackRock’s participation in Ripple’s upcoming Swell 2025 conference, which hints at increasing institutional interest despite recent price volatility.
Technical Analysis and Price Outlook
XRP’s price action after the drop reveals key technical points:
- The $2.94 support level has held firm, reinforced by aggressive dip-buying that prevented deeper declines.
- Resistance is firmly established in the $3.02 to $3.05 range; prices have repeatedly failed to sustain above this band.
- Momentum indicators currently skew bearish, reflecting prevailing selling pressure.
- However, the declining volume after the initial selloff may indicate waning bearish momentum or exhaustion among sellers.
Short-term sentiment remains cautious, with the sub-$3 range representing a psychological and technical barrier. Market watchers are closely monitoring whether the $2.94–$2.95 support zone will continue holding and if whale accumulation will gain momentum or taper off.
What Investors Should Watch
- Sustainability of Support: Will XRP maintain stability around the $2.94 level or test lower prices?
- Whale Behavior: Continued large-scale accumulation could suggest readiness for a bullish turnaround, whereas ongoing distribution may prolong the downtrend.
- Institutional Signals: Developments from BlackRock and other major institutional participants at Ripple’s Swell 2025 event may significantly impact future XRP narratives, including prospects for XRP-related ETFs.
- Resistance Response: The critical $3.00–$3.05 resistance band remains a key battleground; a sustained break above it could challenge the recent bearish trend.
As XRP navigates these mixed signals amidst a volatile market environment, traders and investors alike are advised to monitor on-chain data and institutional movements closely. While short-term weakness persists, the interplay between selling pressure and accumulation may set the stage for XRP’s next directional move in the weeks ahead.
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Price Action Summary:
- High (July 31): $3.17
- Low (Aug 1): $2.94
- 24-hour change: -8%
- Volume spike during correction: 259.21 million units (vs. 64.89M average)
- Closing price (Aug 1): $2.98
Shaurya Malwa is Co-Leader of the CoinDesk tokens and data team in Asia, specializing in crypto derivatives, DeFi, and market analysis.
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