XRP is currently facing a sharp price drop, trading at $2.85 after a decline of nearly 10% in the past week. Analysts warn that the price may fall further. Technical signals, on-chain data, and trends in the overall market suggest that XRP price could drop to a key support range between $2.40 and $2.60.
Bearish Signals Stack Up: XRP Faces Growing Pressure
The recent drop appears to be driven by a confluence of bearish signals. Notably, over 720 million XRP were dumped by whales in the last 48 hours. There was also an unverified report including a massive 200M XRP transfer reportedly tied to Ripple co-founder Chris Larsen.
This selloff, paired with a flash sell signal from the Tom DeMark Sequential on the 4-hour chart, has added fuel to the ongoing correction, as noted by popular crypto analyst Ali.
Adding to the bearish pressure is a death cross on the MVRV ratio, historically a reliable indicator of trend reversals. With derivatives open interest dropping 7.12% amid $17 million in bearish bets, it’s clear sentiment has flipped cautious.
This sharp decline also reflects broader altcoin weakness. Bitcoin dominance rose 0.36% in the last 24 hours to 61.61%, as traders rotate out of riskier assets. The Altcoin Season Index plummeted 25% this week to 33, with market participants growing defensive ahead of the upcoming U.S.–China tariff deadline on August 12.
XRP Price Analysis: Eyes on $2.40–$2.60
Technical indicators show XRP price broke below its $3.00 psychological support and is now retesting the $2.75 level, which absorbed a massive 222M XRP in volume within 4 hours, potentially signaling panic selling exhaustion.
However, market experts like Michaël van de Poppe highlight that XRP’s “level lost = deep correction,” with entry interest now clustering between $2.40 and $2.60. This range aligns with on-chain accumulation zones shown in UTXO Realized Price Distribution (URPD) data, which reveals significant buyer interest around $2.48 and $2.28.
The 4-hour chart supports this view. The price has dropped below the 50-day moving average of $3.09 and is now close to the 200-day moving average of $2.85, as per Santiment charts. If it closes decisively below this level, it could fall towards the demand area of $2.40 to $2.20, where we expect stronger support.
Network activity also reflects weakening momentum. Santiment data confirms that active addresses and network growth have dropped sharply alongside price, confirming a short-term cooldown in user engagement and investor interest.
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