XRP sell-off pushes price below $3 – Is the rally over?
Bulls face the heat with profit-taking, liquidations, and no support below.
Key takeaways
XRP’s fall below $3 followed a failed breakout attempt and heavy selling pressure from both retail and large holders. On-chain data suggests the move was driven by profit-taking rather than panic. XRP may face further downside unless buying interest returns.
Ripple [XRP] has fallen below the $3 mark after struggling to break past a key resistance level. A sudden surge in selling has sparked fresh concerns about fading strength and the chance of more losses ahead.
Momentum breaks down
XRP’s drop from its local high near $3.15 began with a clear shift in momentum. The RSI plunged to oversold territory at 29, at press time, pointing to strong bearish pressure with little relief.
Simultaneously, the OBV showed a steep decline, a sign of aggressive selling and a drop in cumulative buying interest.
All this put together shows that sellers are in firm control. Unless demand returns quickly, XRP risks further declines below $2.90 as short-term support looks increasingly fragile.
Heavy liquidations hint at bull trap
The Binance liquidation heatmap showed intense activity just above the $3.20 level, where leverage stacked up before a sharp downturn.
This cluster indicates that many long positions were perhaps caught off-guard and flushed out as the price reversed.
The heavy liquidation zone suggests $3.20 acted as a bull trap, attracting leveraged traders before triggering a cascade of forced sell-offs.
As price dipped below $3, the absence of significant liquidation support zones hint at weak bullish defense.
Profit taking, not panic
Recent spikes in XRP inflows to Binance, especially near local price peaks, point to planned profit-taking rather than panic selling.
The latest rise in exchange deposits happened as XRP climbed above $3.40, showing that whales and large holders were preparing to sell.
Although the inflow volume is still lower than the huge $660 million spike seen in May, the timing matches the recent shift in momentum. This supports the idea that the drop below $3 came from strategic selling.
If these inflows remain high, they could continue to put pressure on the price and limit any quick recovery.
