XRP has slipped back below the psychologically important $3 mark, trading at $2.94 at the time of publication.
The move represents a 2% daily loss and extends a 1% decline on the week, with the token now down more than 7% over the past month.
The pullback highlights a sharp reversal in sentiment. Despite growing optimism around a potential spot XRP exchange-traded fund (ETF) and lingering momentum from Ripple’s legal victory in August, price action has failed to sustain. Instead, traders are confronting the reality of fading catalysts, profit-taking, and unresolved regulatory questions.
XRP price market data
Market data shows that XRP underperformed the broader crypto market’s 2.88% decline over the past 24 hours, falling 2.36% during the same window. Analysts attribute the weakness to three overlapping drivers: heavy profit-taking after the initial ETF filing buzz, technical rejection at the $3.06 resistance zone, and whale distribution flows exceeding $90 million in recent days.
Regulatory developments have only added to the uncertainty. The Securities and Exchange Commission (SEC) has delayed decisions on seven XRP ETF applications until October 2025. While the Ripple-SEC case dismissal in August removed a major legal overhang, the extended timeline for ETF approval has created a “sell the news” effect.
Without the immediate prospect of institutional inflows, estimated between $4.3 billion and $8.4 billion, the bullish narrative has been pushed further out.
XRP technical analysis
Technically, XRP’s rejection at the 50% Fibonacci retracement level ($3.06) from its July high of $3.38 to its August low of $2.75 has deepened bearish momentum. Indicators confirm the breakdown: the MACD histogram at –0.0199 signals accelerating downside pressure, while failure to hold above $3 suggests weak conviction among bulls. Analysts are now eyeing $2.99 as the next key support at the 61.8% Fib retracement, just 2.3% below current levels.
Looking ahead, traders will be closely watching the SEC’s commentary at the Digital Asset Summit (September 9–11) for hints of regulatory direction. Until then, XRP’s trajectory remains vulnerable to further volatility, with short-term sentiment skewed bearish despite long-term optimism over ETF approval and institutional adoption.
Source: https://finbold.com/xrp-price-drops-under-3-as-traders-dump-millions/