Can XRP Hold Its Ground? Navigating the Current Market Challenges

Key Insights:

• XRP has seen a steep decline of 19% in only three weeks, confronting a tricky resistance range between $3.10 and $3.00. Meanwhile, the crucial support level stands at $2.65.

• Since July 9, major players available in the market, or “whales,” have sold off greater than 640 million XRP tokens.

• The $2.65 mark will not be only a random number; it lines up with the quarterly VWAP and the 50% Fibonacci retracement. Falling below this might potentially erase the gains made in Q3.

XRP’s Rollercoaster: From Highs to Lows

After reaching a yearly peak of $3.65 on July 18, XRP is facing a pointy pullback. The cryptocurrency is now nearly 19% off its high, with efforts to interrupt through the $3.10–$3.00 resistance proving difficult.

Over the weekend, XRP prices briefly dipped right into a key support zone between $2.66 and $2.80, only to bounce back, forming a better low on Sunday.

Data from CryptoQuant suggests the downturn is partly resulting from large holders, or “whales,” exiting the market. Since mid-July, these whale wallets have been offloading their XRP holdings, with the 90-day moving average of net outflows currently at a negative 640 million XRP, valued around $340 million. This regular distribution aligns with the recent price drop.

What’s Next for XRP?

Looking on the each day chart, well-known crypto trader Nebraskangooner warns of a possible “full pump retrace,” where prices might return to $2, the place to begin of the previous rally. Holding above $2.65 is crucial for maintaining a bullish stance.

Why $2.65 Matters

The $2.65 level is pivotal for XRP’s long-term bullish outlook. It served as a big resistance throughout the first half of 2025, and breaking above it in July marked a shift in market structure. Maintaining this level is crucial for sustaining the uptrend.

Crypto analyst Dom emphasizes that XRP has managed to carry at $2.80, a critical initial support area, staying above $2.65, which aligns with the quarterly VWAP (Volume-Weighted Average Price). VWAP offers traders a way of fair value, and any dip below could disrupt short-term bullish setups.

Fibonacci Retracement and Future Prospects

Technical analyst Mind Trader notes that XRP has hit the 50% Fibonacci retracement from its $3.65 high. If this level holds, there’s potential for a renewed rally targeting $4.15, possibly setting a brand new all-time high. However, breaking below $2.65 could mean revisiting the $2 level, undoing months of progress and indicating broader market weaknesses.

This article is for informational purposes only and doesn’t offer financial advice. Always conduct your individual research before making investment decisions.