XRP Selling Reaches 2-Month High: Will $3 Support Hold Against the Tide?

XRP faces its toughest test in months as selling pressure hits unprecedented levels—can the $3 support level withstand the onslaught?

The Perfect Storm

Traders are dumping XRP at rates not seen since July, creating a brutal showdown at the critical $3 threshold. This isn't just normal volatility—it's a full-scale stress test for one of crypto's most watched assets.

Market Mechanics Exposed

Massive sell orders are flooding exchanges, pushing liquidity to its limits. The $3 level isn't just psychological—it's where institutional buy walls traditionally form. Break this, and there's not much stopping a slide toward $2.50.

Whale Watching Intensifies

Large holders are moving coins to exchanges at alarming rates. When whales dump, minnows get washed away—classic crypto behavior that never seems to 'evolve' beyond basic greed patterns.

Technical Breakdown

RSI readings show oversold conditions, but in crypto, oversold can become ultra-oversold in minutes. Support levels are like New Year's resolutions in traditional finance—easily broken when pressure mounts.

The $3 question remains: will buyers step in or step aside?

XRP Holders Are Selling

The Realized Profit/Loss ratio for XRP is at a NEAR two-month high, signaling that investors are actively locking in gains. This metric shows realized profits have surged, which in part reflects confidence that XRP remains a profitable trade for many market participants.

However, this trend is a double-edged sword for XRP. While profits confirm bullish sentiment, widespread selling increases pressure on the price. A continued rise in profit-taking could weigh on short-term stability, keeping XRP vulnerable to breakdowns despite broader Optimism in the market.

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One saving grace for XRP is the behavior of long-term holders. The slight decline in Liveliness shows that these investors are neither accumulating aggressively nor selling significantly. This consistency is helping XRP remain stable even as other cohorts MOVE to offload their positions.

By holding rather than distributing, long-term investors are providing the market with a crucial cushion. This stability has kept XRP anchored above the $3 threshold, preventing a sharper decline that might otherwise have materialized given the selling pressure.

XRP Price Can Bounce Back

At the time of writing, XRP is trading at $3.02, maintaining its footing above the psychological $3 mark. The altcoin recently tested resistance at $3.12 but failed to secure a breakout, reinforcing the mixed outlook for short-term moves.

Going forward, XRP will likely consolidate between $3.07 and $3.02. With bullish and bearish signals in balance, the price may continue trading sideways as investors assess whether momentum can tilt upward or downward.

If long-term holders also begin to sell, XRP risks slipping below $3.00. A break under this key support could send the price down to $2.94 or even lower. This WOULD completely invalidating the bullish thesis and exposing investors to sharper downside risk.