XRP Dips Under $3: Time to Buy the Fear or Brace for More Pain?

XRP just flashed a rare buy signal—or a trap. The crypto darling tumbled below $3 today, triggering Pavlovian 'discount' reflexes among traders. But is this a dip worth catching?

Market psychology at play

Every 10% drop sparks the same debate: 'Buy low' optimism versus 'falling knife' caution. With XRP now 55% off its 2025 peak, the bulls are licking their chops.

Technical tightrope

The $2.80 level held twice last month—third time's the charm or the breakdown? Meanwhile, perpetual swaps show leveraged longs getting liquidated faster than a crypto VC's moral compass.

Regulatory deja vu

No, the SEC hasn't suddenly grown reasonable—but traders are betting that old lawsuits won't resurface like bad Twitter takes. Risky assumption.

Bottom line: In a market where 'fundamentals' means whatever pumps your bags, this could be the steal of Q3... or the setup for September sorrow.

Should You Buy The XRP Dip?

Buying the dip has often proven to be a solid investment strategy. XRP is expected to hit new peaks over the coming months. The asset’s recent climb was likely due to the SEC officially ending its years-long lawsuit against Ripple. The end of the lawsuit has started a new era for the popular cryptocurrency.

XRP’s rally was also propelled by a general market bullishness earlier this month. Consumer price index (CPI) data came in lower than anticipated for the month of July. The development led to a substantial boost in investor sentiment. Low CPI numbers have increased hopes for an interest rate cut in September.

However, the rally did not last very long. The market began to see liquidations on Aug. 14, after producer price index (PPI) numbers came in higher than expected. PPI rose by 0.9% instead of the anticipated 0.2%. The MOVE has cast a shadow on whether the Federal Reserve will cut interest rates next month or not.

XRP is still anticipated to grow over the long term. There are several spot XRP ETFs awaiting approval at the SEC. There is a very high chance that the SEC will approve at least one XRP ETF sometime this year. An ETF approval will likely lead to a surge in institutional inflows into XRP. Such a scenario could lead to XRP hitting new all-time highs.