XRP sell-off pushes price below $3 – Is the rally over?

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