Why Did XRP Price Drop Below $3? Will It Recover Soon and Rise Again?

XRP has once again reminded investors that crypto never moves in a straight line. After peaking near $3.66 in July, the token has slipped more than 20%, with its latest move dragging it below the $3 mark.

This psychological level has often acted as a strong point of support and resistance, which is why its recent drop has caught so much attention.

Now the big question is whether XRP can recover quickly and resume its climb or if further weakness is ahead. Let’s take a closer look at the signals shaping XRP’s next move.

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Key Takeaways

1. XRP is testing key support near $2.95. Holding this level could set up a rebound.

2. Bullish chart patterns hint at $4 to $5.80 targets. Analysts see potential breakouts if momentum returns.

3. Failure to hold $2.95 may trigger a deeper dip. Prices could slide toward $2.40 before stabilizing.

XRP Price Action: Why It Fell Below $3

XRP’s recent fall to $2.89 marks a sharp 20% retreat from its July peak near $3.66. The decline was fueled by broader market volatility, short-term profit taking, and the psychological pressure around the $3 threshold.

Once XRP dipped below that line, automated sell orders and cautious traders added to the downward momentum.

Despite this drop, the context matters. XRP had been on a strong rally earlier in the year, climbing steadily on both technical and sentiment-driven momentum.

As with many assets, corrections are normal after sharp rises. Traders often lock in gains near resistance zones, and that appears to have played out here.

Looking at the charts, analysts highlight $2.95 as a crucial level. Historically, this zone acted as resistance during XRP’s mid-2021 recovery before turning into support earlier this year.

The current test of this level is significant, as it could determine whether XRP stabilizes and recovers or slides further.

Short-term sentiment may feel shaky, but longer-term holders tend to view such corrections as opportunities.

The real focus is whether XRP can reclaim $3 as support, because doing so could open the path to higher targets.

Read Also: XRP Price Prediction: Will $10 Be Hit Soon?

Technical Outlook: Bullish Patterns Still in Play

Even with XRP trading under $3, several technical patterns suggest upside potential if key supports hold.

Analysts see multiple bullish structures forming, including Fibonacci retracement levels, pennant formations, and even a larger cup-and-handle pattern.

• Fibonacci Retracement Levels: Measuring from XRP’s swing high of $3.38 to its swing low of $1.61, the 1.618 retracement level aligns with the $4.00-$4.40 target zone. Analysts suggest that if XRP can maintain support at $2.95, a rebound toward this range is likely.

• Bull Pennant: XRP’s price action also forms a bull pennant, a continuation pattern that often signals further upside after a period of consolidation. A successful breakout from this pattern points to targets as high as $4.62.

• Cup-and-Handle Formation: Another encouraging sign is the presence of a cup-and-handle pattern on the daily chart. XRP appears to be forming the handle stage, which usually precedes an upward breakout. The neckline sits around $3.80, and a break above it could project gains toward $5.80, almost double today’s levels.

These bullish signals do not guarantee a rally but highlight the possibility of strength if buyers defend support zones. Traders watching closely will likely see $2.95 as the line in the sand.

A bounce there could attract more momentum, pushing XRP back above $3 and potentially into the $4 to $5 range.

Read Also: XRP Price Analysis: USD Trends & Insights

Risks: What If XRP Loses Its Support?

No technical setup comes without risk. For XRP, the immediate concern is what happens if it fails to hold the $2.95 support.

Analysts warn that a break below this zone could trigger a longer corrective phase, sometimes described as a WXY correction.

This type of pullback is characterized by extended sideways or downward movement instead of a quick rebound.

If such a correction unfolds, the next logical support lies near $2.40. This level coincides with heavy trading activity from the 2020-2021 cycle and aligns with the 200-day exponential moving average.

In practical terms, this means many traders and investors already recognize $2.40 as a strong demand zone.

While a decline to $2.40 would feel steep, it may not spell disaster. Historically, XRP has often bounced back strongly from long-term moving averages and areas of dense trading history. Such pullbacks can even provide healthy resets in overheated markets.

Investors should also remember that broader market conditions matter. If Bitcoin and the wider crypto sector remain steady, XRP is more likely to recover quickly. But if the overall market turns risk-averse, downside pressure could weigh more heavily.

Either way, knowing these risk levels gives traders a clearer plan, whether to accumulate at lower points or wait for confirmation of a breakout.

Read Also: XRP Futures Hit 2025 High on CME, $6 Price Target in Sight

Conclusion

XRP slipping under $3 has naturally raised concerns, but the bigger picture suggests it may simply be at a crossroads.

On one side, bullish setups like the bull pennant and cup-and-handle pattern point toward possible rallies to $4.40, $4.62, or even $5.80.

On the other, a failure to hold $2.95 could send prices closer to $2.40 before any recovery begins.

For long-term investors, volatility like this is part of the journey. Pullbacks often create opportunities, especially when strong technical structures remain intact. The key is not to panic but to plan.

Platforms like Bitrue make this process smoother and safer. With easy access to XRP and other top cryptocurrencies, strong security, and user-friendly tools, Bitrue helps you trade and invest with confidence.

Whether XRP rebounds immediately or tests deeper supports, having a reliable exchange ensures you can act strategically and stay one step ahead.

FAQ

Why is the XRP price down today?

XRP has fallen due to profit-taking, market volatility, and pressure around the $3 psychological level, which triggered further selling once broken.

Can XRP recover above $3 soon?

Yes, if it can hold support at $2.95, a rebound above $3 is likely. Technical patterns even point to potential targets around $4 or higher.

What is the XRP price prediction for 2025?

Predictions vary, but bullish technical patterns suggest XRP could climb above $4 to $5.80 if momentum builds. Long-term outlook depends on adoption and market conditions.

What happens if XRP falls below $2.95?

Breaking below $2.95 may trigger a deeper correction, with $2.40 as the next support. This would likely be a temporary reset rather than a complete collapse.

Is XRP still a good investment?

XRP remains popular due to its role in payments and strong community support. While short-term volatility is common, many see long-term potential if adoption continues.

Disclaimer: The views expressed belong exclusively to the author and do not reflect the views of this platform. This platform and its affiliates disclaim any responsibility for the accuracy or suitability of the information provided. It is for informational purposes only and not intended as financial or investment advice.