XRP faced a notable decline, falling to the $2.90 level as delays in exchange-traded fund (ETF) approvals and heightened blockchain security concerns rattled investor confidence. The digital asset, closely associated with Ripple, encountered strong resistance above $3.00, leading to a bearish turn among institutional traders and increased selling pressure.

Ongoing Regulatory Setbacks and Security Issues

Recent developments have cast a shadow over XRP’s momentum. A fresh security audit placed the XRP Ledger at the bottom among 15 evaluated blockchains, severely undermining its credibility from an institutional standpoint. Complementing this development, the U.S. Securities and Exchange Commission (SEC) opted to postpone decisions on several XRP ETF proposals, including a high-profile filing submitted by CoinShares in partnership with Nasdaq. The regulatory silence has further intensified concerns around ongoing legal and compliance risks.

These twin challenges—lagging security ratings and regulatory uncertainty—have led hedge funds and market-makers to reevaluate their exposure to XRP within diversified digital asset portfolios. Wide-scale portfolio restructuring has contributed to significant pressure on the asset’s short-term price trends.

Recent Market Movements

XRP recorded a 4% drop over a 24-hour period, retreating from $3.02 to $2.90 by the early hours of August 20. The most significant downturn occurred between 1:00 p.m. and 3:00 p.m. on August 19, when the price sharply fell from $3.04 to $2.93 in response to high-volume trade activity.

Trading volume peaked dramatically at 137.18 million during the 2:00 p.m. hour, nearly doubling the average daily figure of roughly 71 million tokens. Despite the selloff, buyers provided significant support within the $2.85 to $2.88 range throughout the overnight sessions. By market close, XRP stabilized around $2.89 to $2.90, indicating a possible equilibrium forming just below the psychologically important $3.00 resistance level.

Reading the Charts: Technical Outlook

From a technical analysis perspective, XRP’s rejection at $3.04 has now clearly defined that level as firm resistance. Meanwhile, support has been consistently confirmed at the $2.85–$2.88 range due to multiple rebounds during lower-volume sessions. The consolidation between $2.89 and $2.90 signals that immediate bearish momentum might be waning, although no decisive reversal patterns have emerged yet.

Additionally, the substantial spike in volume reflects significant repositioning by institutional players, with many opting to divest or reduce exposure ahead of uncertain regulatory outcomes.

Key Market Considerations for Traders

Traders are closely monitoring whether the $3.00 mark will be recaptured as a support level or continue to serve as a barrier. Institutional behavior around the $2.85–$2.90 support zone will likely determine the direction of short-term price action. Many also view the pending SEC ruling in October as a potential catalyst for medium-term volatility.

An equally important factor involves the perceived lax blockchain security standards of the XRP Ledger. Analysts expect that continued low audit scores could hurt the asset’s chances of securing ETF approvals, further influencing institutional sentiment and regulatory perspectives.

Related: XRP Price: $12M Max Pain for Bears

A candlestick chart illustrating XRP’s dip to the $2.90 support level amid ETF uncertainties and security concerns.