XRP Plunges Below $3: Bears Eye Critical $2.80 Support Level

XRP just got hammered—tumbling below the psychological $3 barrier as bearish momentum accelerates toward the $2.80 support zone.

Market Carnage Unfolds

Selling pressure intensified throughout the session, slicing through key technical levels like a hot knife through butter. The breakdown signals potential further downside unless buyers step in aggressively at these levels.

Support Under Siege

That $2.80 line isn't just another number—it's the last stand for bulls hoping to prevent a full-blown cascade. Break that, and we're looking at a slide toward territory not seen since the last 'crypto winter' narrative did the rounds.

Meanwhile, traditional finance pundits are probably sipping champagne and muttering 'told you so'—because nothing makes a Wall Street veteran happier than watching digital assets prove their volatility thesis right. Again.

Technical Breakdown: Key Levels to Watch

• Immediate Resistance: $2.90 – any short-term recovery must clear this level to signal relief.

• Major Resistance: $2.920, followed by $3.00 where a bearish trend line caps gains.

• Upside Targets: If buyers break above $3.00, the next hurdles sit at $3.050 and $3.120.

• Critical Support: $2.850 remains the first line of defense. A break lower could expose $2.80 and $2.740.

The 100-hourly Simple Moving Average (SMA) has flipped into resistance, adding to the bearish technical outlook. Meanwhile, RSI indicators suggest sellers still maintain control, though oversold conditions could surge brief rebounds.

Whales and Retail Investors Diverge

On-chain data highlights a stark contrast in investor behavior. Large holders — wallets with between 10M and 100M XRP — offloaded around 460 million tokens over the past week. This wave of selling has amplified downside pressure on price.

Smaller whales, however, appear to be buying the dip. Wallets holding 1M–10M XRP collectively added about 130 million tokens, signaling that retail-aligned investors see long-term opportunity despite the short-term turbulence.

Still, with 93% of XRP’s circulating supply in profit since the post-election rally in late 2024, analysts warn that profit-taking could accelerate if bearish momentum continues.

Macro Pressure Ahead of Powell’s Speech

Markets are also bracing for macroeconomic cues as Federal Reserve Chair Jerome Powell prepares to deliver remarks at the Jackson Hole symposium on Friday. Any hawkish signals on inflation or interest rates could weigh on risk assets, including cryptocurrencies.

“XRP is particularly vulnerable at the moment given the profit-heavy positioning among holders,” noted one market strategist. “If Powell leans hawkish, it may trigger another wave of selling as investors lock in gains.”

Ripple’s Regulatory Tailwind Not Enough?

Despite Ripple’s long-awaited legal victory over the SEC earlier this year — a resolution that removed a cloud hanging over XRP since 2020 — the token has struggled to maintain bullish momentum. The favorable ruling initially surged strong inflows, but traders appear to have already priced in the regulatory clarity.

Some analysts argue that while regulatory certainty is bullish long-term, short-term performance now depends more on broader crypto sentiment, whale activity, and macroeconomic drivers like Fed policy.

Outlook: More Pain or Relief Rally?

For now, the technicals point to a cautious outlook:

• Bearish Case: A sustained move below $2.85 could open the door to $2.80 and $2.74, with deeper declines possible if selling intensifies.

• Bullish Case: If bulls defend $2.85 and reclaim $3.00, XRP could retest $3.050–$3.120 in the coming sessions, potentially setting up a rebound.

With whales reducing exposure and macro risks looming, bulls face a tough battle to regain control. Traders should keep a close eye on Powell’s Jackson Hole remarks, which may set the tone for XRP’s next big move.