XRP Price Drops as Profit-Taking and Market Weakness Weigh

The XRP price has recently faced a notable decline, falling for four straight trading sessions and shedding roughly 8% from its recent highs. This downturn comes after the token reached an intraday low of $3.11 on August 12, 2025. At present, XRP is trading slightly higher at $3.1422, reflecting a modest 0.5% gain within the current session. The price pressure appears to stem primarily from widespread profit-taking following the cryptocurrency’s robust post-SEC settlement surge.

A major factor behind this retreat is the natural tendency of the market to correct after sharp gains. XRP’s trading volume spiked by 208% to $12.4 billion soon after the legal clarity emerged, triggering a wave of buying. Although volume has since eased to $9.16 billion, it remains well above average, suggesting sustained institutional attention even amid the dip.

XRP’s struggle also coincides with an overall downturn across major cryptocurrencies. Bitcoin has failed to maintain key milestones, Ethereum is struggling below $4,300, and Dogecoin slid by over 5%. This broader negative sentiment has significantly impacted altcoin performance, including XRP.

From a technical standpoint, XRP has found strong support around $3.13, a level tested on multiple occasions with apparent volume backing. On the upside, notable resistance zones exist between $3.27 and $3.31. The latter corresponds with the 23.6% Fibonacci retracement level, serving as both a technical roadblock and a psychological barrier for traders aiming to push higher.

During a recent trading session, the price dropped sharply from $3.20 to $3.15, coinciding with peak hourly volume of over 73 million. This highlights aggressive seller behavior, particularly within resistance zones. Additional support lies at the 50 Exponential Moving Average (EMA) of $2.89 and the 50% Fibonacci level at $2.78, with further downside potentially extending to the 200 EMA around $2.28.

Current market sensitivity has also been influenced by several other contributing factors:

• Ripple’s scheduled release of 1 billion XRP tokens from escrow worth over $3.2 billion earlier this month caused temporary selling pressure, despite assurances that it’s routine.
• Profit realization following resolution of the SEC case encouraged large holders to liquidate portions of their positions.
• Cooling enthusiasm over potential XRP-based ETFs, particularly after BlackRock denied any direct involvement, has stifled speculation.
• Negative sentiment in derivatives markets, with open interest falling 36% to $3.54 billion and funding rates turning bearish, indicates increased short exposure.

Despite the recent correction, whale activity remains bullish. Entities holding between 100 million and 1 billion XRP have accumulated over 900 million tokens worth approximately $2.88 billion in just 48 hours, highlighting long-term confidence in the asset’s potential.

In terms of projections, expert opinions vary significantly. Some bullish forecasts come from high-profile traders and analysts. One prominent analyst expects XRP to reach $13.00 within 40 days, citing strong technical breakouts. Others offer more tempered views, with mid-range targets between $4.47 and $5.50, while conservative models estimate a value closer to $3.12 by the end of August 2025.

Looking at potential support and resistance levels, traders should watch how XRP reacts around the $3.13 support if selling pressure resumes. Any definitive break above $3.31 could rekindle upward momentum, aiming for consolidation between $3.60 and $3.66. On the flip side, further declines may place the $3.00 psychological mark at risk, followed by deeper retracements to August lows near $2.66.

Notably, the broader crypto market’s regulatory and monetary developments will continue shaping XRP’s outlook. The positive resolution of Ripple’s case and institutional support underlines a bullish long-term foundation for XRP, despite short-term volatility.

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

Overall, XRP’s recent dip seems more like a strategic cooldown than a structural failure. With critical support holding and whale accumulation ongoing, the current phase could provide strategic entry opportunities for medium to long-term investors willing to ride through volatility.