$XRP is at a critical level in the market as traders prepare for potential volatility around the $3 mark. Analysts warn that large short order clusters above the current price could trigger a wave of liquidations if this token rises higher, setting the stage for a strong price surge due to selling pressure.
The token is currently trading at $2.86, down 1.53% from yesterday and nearly 8.91% from the past week. A resistance level has formed between $2.90 and $2.95, creating a narrow band that separates the market from the $3 threshold. Trading volume remains high, over $4.6 billion in the last 24 hours, making XRP one of the most liquid digital assets despite the recent price decline.
Institutional Flow and On-chain Signals
On-chain metrics show that large investors are still actively participating in the market. Recent trading sessions have seen XRP's trading volume soar to 155 million tokens, significantly higher than the average of 63 million, indicating stable institutional participation even as prices dip slightly.
Data also shows that long-term XRP holders are taking profits during the correction. Realized gains have exceeded $2 billion since the most recent downturn began, indicating that the distribution process is still ongoing. This follows a familiar pattern: at the end of July, XRP holders took profits of over $375 million in just one day when the price briefly hit $3.55, leading to the steepest decline in months.
Whales, Liquidity, and Short-Term Risk
The market heat map shows significant liquidity accumulating above the $3 level, a level that analysts believe could become a breakout point. If buying pressure pushes $XRP above the resistance level, a series of forced sell orders could amplify momentum and push the price higher.
At the same time, the liquidity group from $3 to $4.50, existing after the price surge in July, is now acting as the upper resistance zone that buyers must overcome.
According to on-chain data, over 94% of XRP holders are currently in profit, a figure typically seen near cycle peaks. While this reflects strong investor confidence, it also increases the risk of selling pressure as traders take profits.
Analysts warn that this move puts XRP in a zone that some call 'from belief to denial,' where bullish sentiment can quickly turn to skepticism if the upward momentum stalls.
💥Outlook
Currently, XRP's future depends on the $3 resistance level. A decisive breakout above this level could trigger a strong short-selling wave, but failing to reclaim this level could lead to a deeper pullback as profit-taking continues. With ample liquidity and whales still active, the next move could be quite strong.
Traders are closely monitoring the $2.90–$3.00 range, as a clear breakout could shift momentum in favor of buyers, while another rejection could deepen the correction.
