XRP Price Faces Key $3 Support as Correction Deepens

XRP’s recent price action signals a weakening trend, with the token hovering precariously around the crucial $3 level. After a parabolic rally in July that pushed prices above $3.70 and exceeded market expectations, bullish momentum has sharply cooled. The cryptocurrency is now undergoing a slow, grinding correction that threatens to erase much of its recent gains.

Currently trading near $3.11, XRP has posted several consecutive lower highs and closes, highlighting a shift from accumulation to distribution—a bearish signal for investors. The lack of strong dip-buying activity adds to concerns, as daily trading volume shows neither aggressive selling nor significant buyer interest. This absence of volume support suggests the ongoing correction could deepen further.

Technical indicators reinforce this cautious outlook. The Relative Strength Index (RSI), while still elevated, is gradually declining from overbought territory, implying that bullish momentum has faded. The psychological and technical importance of the $3 level cannot be overstated; a decisive breakdown below this threshold could trigger a move toward the next support zone at $2.99–$2.75, where previous consolidation occurred before the July breakout.

If XRP fails to stabilize above $3, the bullish impulse that recently energized the market could unravel, potentially resetting expectations for short-term price action. Traders and investors are closely watching this support area as a critical inflection point that may determine XRP’s next major move.