XRP Price Outlook: Factors Pushing Ripple Price Below $3 and Future Projections
XRP has experienced a significant decline recently, dropping below the crucial $3 mark. This unexpected downturn has left investors wondering about the driving forces behind Ripple’s native token during a highly volatile crypto market. After a remarkable surge from November 2024, where XRP jumped from $0.50 to $3.27, the sudden pullback has wiped out approximately 8-10% of its value in just a few days.
Several factors contributed to XRP’s price fall, starting with a general sell-off across the cryptocurrency market. In mid-August, major assets like Bitcoin and Ethereum experienced a downturn, leading to widespread liquidations and increased selling pressure on altcoins like XRP. Being a high-beta instrument, XRP tends to exhibit amplified price reactions during such market-wide sell-offs, which explains its drop below the $3 support level.
Moreover, whale activity and profit-taking have played a significant role in driving down XRP’s price. Data from on-chain sources revealed that wallets holding sizable amounts of XRP have been selling aggressively, with transactions totaling hundreds of millions of dollars. This substantial selling has exceeded market liquidity, exerting further bearish pressure on XRP’s price.
From a technical standpoint, various indicators have signaled bearish trends for XRP. The cryptocurrency broke below a symmetrical triangle formation on the 4-hour chart, leaving behind the crucial $3 support level. Indicators such as the Moving Average Convergence Divergence (MACD) and Relative Strength Index (RSI) have also indicated a downward trend, with the RSI dropping to 32, suggesting oversold levels.
Looking ahead, some experts maintain a positive outlook on XRP’s long-term prospects despite its recent decline. Standard Chartered Bank has predicted that XRP could reach $5.50 by the end of 2025, driven by regulatory clarity and potential ETF inflows. Additionally, the decrease in XRP exchange supply and ongoing burn rate may lead to long-term price appreciation through scarcity growth.
Although XRP faces short-term challenges, including market sell-offs, whale activity, ETF delays, and bearish technical signals, its long-term trajectory will depend on Ripple’s ability to navigate regulatory challenges, secure new partnerships, and differentiate itself in a competitive market. Investors are advised to remain vigilant, monitor key support levels, and watch for potential bullish catalysts that could drive XRP’s future performance.
