XRP is once again in the spotlight for all the wrong reasons.
At the time of publication, the token was trading at $2.96, down over 5% in the past 24 hours and more than 9% in the past week, extending a decline from recent highs of $3.31. This retreat comes despite Ripple’s much-publicized legal victory earlier in August, underscoring just how quickly sentiment has soured.
During the same period, XRP’s market capitalization has shed nearly $20 billion, falling from $196 billion to $176 billion. Interestingly, the drawdown has coincided with a spike in trading activity, as 24-hour volume surged 69.97% to $6.37 billion, suggesting heightened speculative flows and possible distribution.
XRP supply pressures intensify
Fueling fresh anxiety among investors is a series of large token transfers linked to Ripple co-founder Chris Larsen. Since July 17, wallets attributed to Larsen have moved roughly 50 million XRP (over $140 million) onto exchanges.
While no definitive evidence of liquidation has surfaced, the mere presence of these inflows is enough to unsettle markets. Larsen’s wallets still hold an estimated 2.5 billion XRP ($7.4 billion), meaning any further transfers could trigger additional selling pressure.
Historically, such exchange inflows from major holders correlate strongly with price declines, as traders front-run potential supply dumps. In this case, the timing of Larsen’s transactions has lined up almost exactly with XRP’s slide from $3.38 to sub-$3 levels.
XRP crypto analyst outlook
Prominent on-chain analyst Ali Martinez added to the bearish mood on Monday, August 18, warning that XRP’s technical structure has deteriorated further.
“XRP just lost another support level at $3, and could be heading to $2.60 or even $2,” Martinez noted.
The warning highlights a trifecta of challenges currently weighing on XRP: whale-driven anxiety, technical breakdowns below key support levels, and capital flight into Bitcoin as institutional flows pivot toward perceived safer bets.
For now, the $3 zone has emerged as a critical psychological and technical pivot. Sustained closes below this threshold could open the door to accelerated downside toward the $2.60 range, with a breach there potentially validating Martinez’s call for a full retracement to $2.
While Ripple’s recent legal clarity was expected to provide a durable tailwind, the market’s response has so far been overshadowed by supply-side fears and broader risk aversion across altcoins.
Source: https://finbold.com/xrp-could-crash-to-2-warns-crypto-analyst/