XRP Faces Critical Test as $840 Million Sell-Off Threatens $3 Support Level
XRP is currently teetering on the edge of a critical $3 support level following a massive $840 million sell-off by investors. This rapid liquidation of net realized profits—one of the most aggressive this month—has raised concerns about the altcoin's ability to maintain its footing. Despite its previous all-time high of $3.66, XRP has struggled to reclaim that peak, prompting both retail and long-term holders to take profits. Glassnode's Liveliness metric indicates a four-month high in long-term holder activity, signaling potential further volatility ahead. As of July 2025, the market watches closely to see if XRP can stabilize or if it will succumb to further downward pressure.
XRP Price at Risk of Falling Below $3 After $840 Million Sell-Off
XRP teeters on the edge of a critical $3 support level as investors offload holdings at an accelerated pace. Over $845 million in net realized profits were liquidated within 24 hours—one of the most aggressive sell-offs this month. The altcoin's struggle to reclaim its $3.66 all-time high has triggered profit-taking among both retail and long-term holders.
Glassnode's Liveliness metric reveals a four-month peak in long-term holder distribution, signaling weakening conviction. When these foundational investors rotate into sell mode, it creates cascading pressure. The $3 psychological floor now faces its sternest test since the last major correction.
XRP Emerges as Top Cryptocurrency Pick Amid Regulatory Tailwinds
With traditional investments offering modest returns, cryptocurrencies continue to attract risk-tolerant capital seeking asymmetric opportunities. XRP stands out as a compelling choice, buoyed by recent regulatory clarity and its focus on cross-border payments infrastructure.
The U.S. regulatory landscape has shifted markedly under the TRUMP administration, culminating in July's Genius Act legislation. This stablecoin framework represents more than just policy - it's a watershed moment for institutional adoption, removing compliance uncertainty that previously constrained participation.
XRP's positioning as a liquidity solution for international transactions appears increasingly validated. While volatility remains elevated compared to traditional assets, the convergence of regulatory support and real-world utility creates a unique investment thesis. Market participants appear to recognize this potential, with XRP outperforming during recent risk-on movements.
Analysts Bullish on XRP Despite Recent Volatility, Cite Legal Clarity and ETF Potential
XRP's price dipped below $3.40 on July 23 amid reports of a wallet linked to Ripple's co-founder selling millions of tokens. Market analysts attribute the decline to short-term volatility rather than a loss of fundamental strength.
Legal clarity surrounding Ripple's ongoing case with the SEC and growing speculation about a potential XRP ETF are fueling institutional interest. Liquidity improvements across major exchanges suggest underlying demand remains robust.
While the asset struggles to reclaim its all-time high, traders note increasing accumulation patterns at current levels. The market appears to be pricing in a resolution to Ripple's regulatory challenges and broader crypto ETF approvals.
XRP Whales Withdraw Tokens Amid Market Downturn, Signaling Long-Term Holding Strategy
XRP investors are moving significant amounts of the cryptocurrency off exchanges, with over 80 million tokens withdrawn between July 23 and July 26. This behavior suggests a shift toward long-term holding rather than immediate selling, as exchange reserves dropped from 4.45 billion to 4.25 billion XRP.
The price of XRP has declined 9% over the past week, currently trading at $3.15, down from its July 18 all-time high of $3.65. Analysts note that losing the $3.15 support level could lead to a test of $3, but the ongoing outflows indicate many holders remain committed despite recent losses.
Market observers point to cooling RSI levels as a potential stabilization signal following co-founder Jed McCaleb's $140 million sell-off, which contributed to $845 million in single-day losses across the XRP market.
XRP Dormant Coins On The Move: Reason Behind Price Plunge?
On-chain data reveals a surge in activity among long-held XRP tokens, signaling potential profit-taking by veteran investors. Santiment's metrics—Mean Dollar Invested Age and Age Consumed—paint a clear picture: dormant coins are being mobilized.
The Mean Dollar Invested Age, tracking the average lifespan of invested capital, has declined sharply. Concurrently, Age Consumed—measuring the destruction of accumulated coin-days—has spiked. This dual trend suggests seasoned holders are liquidating positions, likely contributing to XRP's recent price pressure.
When ancient coins awaken, markets tremble. The movement of these time-locked tokens often precedes volatility, as seen in XRP's recent downturn. This isn't mere speculation—it's blockchain forensics revealing investor behavior in real time.
ChatGPT’s 28-Indicator XRP Analysis: 95% ETF Odds Ignite Battle Over $3.11 Support Line
XRP trades at $3.09 amid declining volume, down 13.36% to $6.66 billion. Bloomberg analysts now peg ETF approval odds at 95%, fueling speculation of a breakout toward $3.50 or a correction. Technical indicators show consolidation below key EMAs, with RSI hinting at potential upward reversal.
MACD remains bearish but shows signs of stabilization. The SEC lawsuit and institutional adoption loom as critical factors, positioning XRP at a regulatory inflection point. Market watchers await clarity on whether legal developments will catalyze or constrain the next major price movement.
