XRP Price Stumbles to $3.12: Sharp Correction or Golden Opportunity Ahead?

Key Insights:

• XRP price risks falling below $3 if it loses key support at $3.15, as per on-chain and technical chart patterns.
• Prolonged profit booking created negative sentiment after Ripple co-founder Chris Larsen sold some XRP holdings.
• Analyst Ali Martinez suggested a solid buy-the-dip opportunity below $3.

XRP price dropped more than 10% in a week, as traders continued profit booking since hitting an ATH of $3.65. The price reached an inflection point, which could decide the direction in the upcoming weeks.

Positive sentiment also eroded as Ripple co-founder Chris Larsen moved and sold XRP, uncertainty surrounding settlement in the Ripple vs SEC lawsuit, and technical chart weakness.

XRP News: $3.15 as Key Support

Santiment data showed XRP price was still 46% higher in a month as it remained in its support level at $3.15. Moreover, dormant coins moved back into circulation, signaling long-term holders getting into the market.

The average XRP investment was 593 days old, getting 91 days younger in the past month. However, the price continued to slip below the key support as whale liquidated their holdings, reported Whale Alert.

Popular analyst Ali Martinez also pointed out $3.15 as a key support level. He added that a pullback to $3 could happen if XRP price loses the support level.

However, this could present a solid buy-the-dip opportunity for investors. Other analysts also see this as a healthy consolidation before a potential breakout to higher levels.

Uncertainty Surrounding Ripple vs SEC Settlement

Ripple vs SEC settlement delay also impacted sentiment among investors. Notably, there was no significant development in the lawsuit or announcement from Ripple and the SEC for over a month.

Ripple CEO Brad Garlinghouse confirmed to drop their cross-appeal in the 2nd Circuit Court. However, the firm would pay $125,035,150 in civil penalty, and the injunction barred Ripple from filing for IPO for at least 4 more years, as per an SEC lawyer.

The SEC is to file a status report in the 2nd Circuit Court by August 15. This could turn out to be an important date for the community seeking positive XRP news.

Former SEC lawyer Marc Fagel also clarified that the SEC typically takes 1-2 months to approve an enforcement recommendation. He said the XRP community can expect a public statement about dropping the Ripple appeal at any time in the next few weeks.

Historically, positive developments or rulings in the lawsuit triggered sudden XRP price rallies.

XRP Price Fell to $3.12 Amid Prolonged Profit Booking

Traders considered the XRP price overbought and started profit booking. Ripple co-founder Chris Larsen also transferred out XRP worth millions to crypto exchanges and wallets as the price hit a new ATH.

The XRP community criticized Larsen for selling some XRP holdings. Notably, $140 million XRP moved to crypto exchanges or related services, triggering a major selling pressure.

XRP price fell more than 1% in the past 24 hours, with the price trading at $3.14. The price hit a 24-hour low of $3.10 as trading volume continued to decline.

However, options traders expect the XRP price to hit $4.4 in the first few weeks. The monthly August expiry data shows the price expected to move between $3.2 and $4.

The derivatives market showed selling in the last few hours, as per CoinGlass data. At the time of writing, the total XRP futures open interest dropped 2% to $8.79 in an hour.

The 24-hour XRP futures OI was down more than 7%. Notably, XRP futures OI on CME and Binance fell by more than 18% and 6%, respectively.