XRP is currently at risk of a sharp drop as key support levels are being tested. The recent technical analysis indicates that XRP has struggled to maintain above crucial support zones around $3.10 to $3.11. This level coincides with the 20-day exponential moving average (EMA), which is a significant short-term support marker.
If XRP fails to hold this support decisively, it could lead to a sharper correction toward lower support levels around $2.73 or even the $2.40–$2.50 range. This potential drop is exacerbated by recent profit-taking after XRP's strong rally driven by regulatory clarity from the Ripple-SEC legal settlement.
Currently, XRP is trading around $3.07 and has faced increased selling pressure following a surge in volume and price during early August caused by the settlement news. While the volume remains high, indicating institutional interest, the inability to hold key support may trigger further downside momentum.
On the flip side, if XRP breaks above resistance levels near $3.20–$3.30, it could resume bullish momentum, targeting higher price points in the $3.50 to $5.50 range, with optimistic price targets around $5.53 projected for the remainder of 2025 by some technical models.
In summary:
Key support zone: $3.10–$3.11 (20-day EMA).
Risk: Breaking below this support may trigger a drop to $2.73 or lower.
Upside: Holding support and breaking key resistance could lead to rallies above $3.50.
Sentiment: Profit-taking amid sustained institutional interest suggests cautious short-term outlook but bullish medium-term potential depending on support hold.
This aligns with XRP’s historical behavior, where August tends to be a volatile month, often marked by profit-taking and price retracement.
