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.
Source: CoinMarketCap
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.
Source: TradingView
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.
Source: CoinGlass
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
Source: Cryptoquant
