XRP Price Prediction: XRP Correction Deepens with 5% Drop—Technical Setup Hints Potential Reversal Levels

XRP price has entered turbulent waters, shedding over 5% in the past 24 hours as whale sell-offs and weakening momentum raise doubts about its short-term trajectory.

The decline has pushed the token near $2.86, sparking renewed debate among traders. While the charts signal bearish conditions, analysts suggest potential reversal levels could still provide relief if buyers regain control.

Weekly Chart Signals Bearish Divergence

Market watchers have cautioned that XRP is showing early signs of weakness on the higher time frames. The weekly chart indicates a bearish divergence, where the token’s price has been reaching new highs, but momentum indicators such as the Relative Strength Index (RSI) have been trending lower.

The weekly chart reveals a bearish divergence, with XRP reaching new highs while its Relative Strength Index (RSI) trends lower, signaling weakening momentum. Source: Crypto World via YouTube

Historically, this type of divergence has preceded extended pullbacks. In late 2020, XRP displayed a similar pattern before undergoing a correction that stretched over several months. Analysts suggest that while an immediate crash is not guaranteed, fading momentum increases the risk of a deeper retracement moving into September and October.

The charts are beginning to mirror the same structures that triggered the 2020 correction, suggesting that XRP may encounter additional pressure before it can regain upward momentum.

Daily Structure: Range-Bound but Vulnerable

On the daily chart, XRP has been locked in a sideways trading range since it broke below the $3.40 level earlier this month. The coin is now consolidating between support at $2.86–$3.00 and resistance around $3.10–$3.15, with heavier barriers closer to $3.35–$3.40.

XRP’s July 2025 surge was driven by multiple bullish catalysts, but the price is now consolidating in a triangle pattern, likely to range until fresh news emerges. Source: litwizard on TradingView

For now, the $2.90 region is acting as a key cushion. A decisive break below this zone could expose XRP to deeper losses toward $2.75 and potentially the $2.55–$2.62 region. Conversely, holding above $2.90 may allow the price to stabilize, though upside momentum remains capped by strong resistance levels.

This market behavior is reminiscent of early 2024, when XRP traded in a choppy sideways range before eventually sliding lower. Analysts warn that the same script may be unfolding again, with small rebounds in the short term but broader downward pressure persisting.

Whale Activity and Market Sentiment

Adding to the uncertainty, on-chain data shows that large investors offloaded approximately 460 million XRP over the past week. Wallets holding between 10 million and 100 million tokens were the primary sellers, while smaller whales with 1–10 million XRP increased their balances by around 130 million tokens.

XRP was trading at around $2.88, down 4.39% in the last 24 hours at press time. Source: XRP Liquid Index (XRPLX) via Brave New Coin

This divergence in behavior suggests mixed expectations within the investor community. Historically, however, market trends tend to align with the moves of larger whales, raising caution for bullish traders.

Meanwhile, XRP remains heavily profitable overall. More than 93% of the circulating supply has been in profit since mid-July, according to Santiment data. Despite the recent decline, the average profit margin has not dropped below 80% since November 2024, when XRP began rallying after the resolution of the Ripple vs. SEC lawsuit.

With most holders still sitting on significant gains, analysts warn that the combination of Powell’s upcoming speech at Jackson Hole and the broader macroeconomic environment could trigger heavier profit-taking if sentiment weakens.

Critical Level for August Close

Despite the pullback, some analysts believe XRP could still stage a recovery if it manages to reclaim a critical level this month. Market strategist EGRAG highlighted that XRP needs to close August above $3.30 to confirm a bullish continuation into September.

A monthly close above $3.30 could trigger XRP’s next upward momentum. Source: @egragcrypto via X

This threshold aligns with the neckline of a double bottom pattern formed on the monthly chart, a structure that often signals the start of a longer-term uptrend. XRP successfully broke above this neckline in December 2024 and retested it earlier this year around the $2.00 support.

“The $3.3 close is the line in the sand,” EGRAG noted, adding that such a move would validate the breakout and potentially flip momentum back to bullish. Without it, XRP risks remaining stuck in consolidation.

XRP Price Prediction: What’s Next for XRP?

The current price of XRP today at $2.88 underscores the fragile balance between bullish hopes and bearish pressures. If the token can reclaim the $2.90 support and break the $3.30 resistance by month-end, technical setups suggest a potential reversal that could lay the groundwork for fresh gains in September.

XRP price may first extend its decline before attempting a rebound toward the resistance area. Source: MattBrand on TradingView

However, failure to hold above key supports may lead to further weakness toward $2.75 and even $2.60. With whale activity, Powell’s Jackson Hole remarks, and broader market sentiment all in play, the coming days could prove decisive for XRP’s short-term trajectory.

For long-term traders, the broader XRP price prediction 2025 and even extended XRP price prediction 2030 remain tied to the adoption of the XRP Ledger, Ripple’s ongoing expansion, and market reactions to regulatory clarity.