XRP price recently dropped beneath the $3 threshold after failing to maintain its bullish momentum. A promising weekend had sparked optimism among investors, but renewed selling activity emerged as the new week began, driving the crypto asset down to $2.95.

This pullback may not mark the end of the correction phase. Recent on-chain indicators highlight increasing exchange inflows across several wallet sizes—signals commonly linked to profit-taking activity.

Key Turning Point for XRP

Looking back, previous XRP peaks—$3 in 2018, $1.9 in 2021, and $0.9 in 2023—were preceded by significant rises in exchange deposits. As noted by CryptoQuant in their analysis, these influxes suggest that larger holders, or ‘whales’, were positioning to liquidate their assets for gains.

At the beginning of 2025, XRP climbed toward the $3.5–$4 range, while exchange inflows, especially from wallets holding 100,000 to over 1 million XRP, surged dramatically. These high-volume transfers are seen as confirmation that large investors may be cashing out, adding to short-term bearish pressure.

Currently, XRP is hovering below the $3 mark. With exchange inflows still elevated, there remains a heightened risk of further declines. Should the trend persist, a fall toward the $2.80 support level is conceivable.

On the flip side, reclaiming and maintaining the $3 level would offer a strong foundation for another bullish rally. The key resistance zone lies between $4.2 and $4.5—if surpassed, it could open the door to a new price discovery phase.

Despite near-term headwinds, market structure analysis shows XRP is in better shape compared to previous cycles, preserving a solid long-term uptrend. From this broader view, a continued ascent toward $5 or more later in 2025 remains a realistic goal.

These findings are in line with established Elliott Wave predictions.

Critical Price Levels May Define XRP’s Path

Elliott Wave analyst Avi Harkishun outlined two potential paths for XRP based on the importance of the $2.95 support zone. According to his analysis, so long as XRP holds above this level, the bullish trend is intact, with a target range between $4.00 and $4.40.

Nonetheless, a clean breakdown below $2.95 could trigger a more extended corrective process through a WXY double-correction pattern, possibly dragging XRP down to the $2.40 region—a historical zone of heavy trading activity and liquidity.

Ultimately, XRP’s near-term trajectory hinges on whether bulls can defend the $2.95 price point or whether sellers regain control, prompting further downside.

Other analysts are also offering their perspectives. In a tweet, crypto analyst Ali Martinez maintained a bullish outlook, stating that “it won’t take long before the token is back at $3.70!” Additional sentiment analysis and outlooks can be found in this coverage of XRP’s future potential.

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

Caption: A monitor displays XRP price movements during high trading activity periods.