After weeks of high-octane crypto moves, the market just tapped the brakes, pulling back about 1.78% in a single day. Among the biggest names feeling the chill is Ripple’s XRP, sliding nearly 7% from its recent $3.40 high.
But here’s the million-dollar question: is this just a quick cool-off before another sprint, or is XRP running on fumes?
The answer might lie in how price action plays out over the next few sessions.
The $3 XRP Zone – Make or Break Territory
XRP’s chart is giving traders a familiar déjà vu. The longer the price drifts sideways under pressure, the more violent the eventual breakout could be. Back in mid-July, XRP exploded to $3.60, a level not seen since last year’s election frenzy, only to tumble quickly, carving out three lower lows in a row.
Now, all eyes are on the $3 support zone. Hold above it, and we could see bullish momentum roar back to life. Lose it, and a slide toward $2.95 becomes very possible.
This is where sentiment flips matter. If traders view the current dip as a healthy breather, they may reload positions here, setting the stage for the next leg up.
Reading the Reset: Why This XRP Pullback Looks Different
When you compare the current setup to July’s run, one thing stands out: the market isn’t panicking. At $3.30, realized profits didn’t even break the $1 billion mark, a sharp contrast to the $3.60 peak, when over $1 billion in profits hit the books and triggered a rapid 23% drop in just two weeks.
On-chain data backs this up. The NVT ratio, a measure of valuation against transaction volume, spiked to 167 during that overheated July rally. Today, it’s sitting at a more comfortable 117, suggesting the market isn’t nearly as stretched.
Leverage Still in Check
Even with the recent bullish mood across crypto, XRP’s Open Interest, the total value of active derivatives contracts, hasn’t gone wild. Instead of blasting past $10 billion, it’s holding around $8.5 billion. That’s a sign traders are keeping leverage under control, avoiding the kind of aggressive positioning that can lead to brutal wipeouts.
This more cautious stance could mean the market is building a healthier base instead of setting up for another overheated blowoff top.
The Bottom Line – Controlled Conditions, Strategic Entry for XRP
Put it all together, and the evidence leans toward this being a market reset, not a full-blown exhaustion point. XRP’s price is holding within a defined range, profit-taking has been less aggressive, leverage is moderate, and valuation metrics are in a safer zone.
However, for risk-tolerant traders, this dip could be a strategic entry point, with $3 as the line in the sand. Just remember: in crypto, controlled conditions can flip quickly, so keeping a close eye on these indicators is key.
