XRP Under Pressure: Can Bulls Defend the $2.60 Support Line?

XRP's bearish momentum is accelerating—traders are eyeing the $2.60 support level like hawks. Will it hold or crumble?

The crypto market's latest drama unfolds as XRP tests a critical threshold. Here's what you need to know.

Support or Surrender?

The $2.60 mark isn't just a number—it's the battleground where bulls and bears clash. A break below could trigger panic selling, while a bounce might spark a short squeeze. Classic crypto volatility at play.

Market Sentiment Turns Skeptical

Traders are flipping bearish faster than a Wall Street analyst downgrading a stock after bad news. But remember: in crypto, sentiment shifts quicker than a meme coin's price.

Will XRP defy the bears or become another casualty of market whims? Stay tuned—this isn't financial advice, just another day in the wild west of digital assets.

Technical Indicators Signal Bearish Continuation

A look at the 12-hour chart shows the situation remains fragile. The Accumulation/Distribution (A/D) line continues to slope downward, a signal that more investors are distributing their holdings than accumulating. The Awesome Oscillator, a momentum indicator, remains red, reflecting sustained bearish energy.

The Directional Movement Index (DMI) further supports this view. With the negative directional index (-DI) and average directional index (ADX) both above 20, sellers remain firmly in control of the market’s momentum.

Although there’s no strong signal of a reversal just yet, traders are keeping a close watch on $2.60. This level aligns with a previously identified Fair Value Gap (FVG) and also corresponds with old range highs, suggesting it could be a natural area for price to find support—or even stage a short-term bounce.

Exchange Flows Hint at Easing Selling Pressure

One important shift that could influence XRP’s next MOVE is the change in exchange flows. On July 23, XRP holders moved a substantial amount of tokens onto centralized exchanges, a behavior often linked to increasing sell pressure. However, recent on-chain data suggests that inflows have eased.

The Exchange Net Position Change metric, which measures the difference between inflows and outflows across platforms, has turned slightly positive. This might indicate that the worst of the selling has passed—or at least that panic selling has slowed.

The reduction in exchange inflows often means fewer tokens are being offloaded, which could help stabilize the price. With most short-term traders having already taken profit during the earlier rally, XRP might now be in a better position to consolidate.

Over 90% of XRP Supply Still in Profit

Despite the drop, it’s notable that over 90% of XRP’s circulating supply remains in profit. This dynamic may have contributed to the aggressive profit-taking seen recently, but it also means a large portion of sellers may have already exited. With fewer holders now sitting on gains, the pressure to sell could be easing.

Traders tend to monitor these levels closely because they give insight into investor sentiment. When a high percentage of the supply is in profit and selling has already occurred, it often suggests the next wave of holders may be more willing to wait for higher prices.

MVRV Z-Score Points to Room for Growth

From a valuation standpoint, XRP doesn’t appear to be in bubble territory. The MVRV Z-Score—a metric that compares XRP’s market value to its realized value—is still well below levels historically associated with market tops.

This means the asset is not currently overvalued relative to its long-term average holding cost. In other words, while short-term volatility remains high, XRP still has room for growth from a macro perspective.

Investors who favor longer timeframes might find the $2.60–$2.70 range an appealing entry point, assuming price stabilizes and avoids further breakdown.

What to Watch Next

Market watchers will be monitoring several key levels and signals in the coming days:

• $2.60 support: This is the immediate level to watch. A clean bounce here could indicate that buyers are stepping in.

• $3 resistance: Having previously acted as strong support, this level is now a ceiling. Reclaiming it would be a bullish signal.

• Bitcoin’s trajectory: As always, XRP is not trading in a vacuum. Continued weakness in Bitcoin could drag XRP lower, while a BTC recovery might lift altcoins across the board.

• On-chain metrics: A shift back to negative exchange inflows or changes in holder profitability could provide clues on whether XRP’s next move is up or down.

Final Thoughts

The recent xrp price dip is part of a broader market correction led by Bitcoin’s retracement. While technical indicators still lean bearish, fundamental data and on-chain signals point to a cooling in selling pressure and potential support at the $2.60 level.

For traders with a short-term outlook, caution is warranted until confirmation of a bounce occurs. But for long-term holders, XRP’s current valuation and the overall market context suggest the recent decline could offer a strategic opportunity—if key support levels hold.