XRP price has started the week with a slight retreat after witnessing a robust rally over the past few days. Last week, the price of the Ripple coin rose to $3.10 amid a broader crypto market rally, as investors shifted their focus to digital assets.
However, the robust surge has also allowed many traders to book some profits and exit the market. This is also evidenced by a recent report, where an analyst said that nearly $1 billion in XRP was sent to exchanges over the past few days.
This move has fueled discussions among traders about the potential reason for the massive transfers. While some said that the traders are preparing for liquidity, others deem this as a sign of potential selling pressures.
Having said that, many market watchers are seeking cues on the potential future movements of the Ripple coin. So, here we take a quick tour of what market pundits are saying and highlight the key XRP price levels to watch ahead.
XRP Price Dips Below $3: More Selloff Incoming?
XRP price has slipped more than 1.3% today to trade at $2.99, while its one-day volume fell 7.3% to $4.83 billion. However, despite the recent pullback, Ripple coin price has returned gains of over 4% in the weekly chart, while adding about 6% over the last 30 days.
The crypto has moved between the $3.03 and $2.95 range in the last 24 hours. Notably, the dip below the $3 has fueled concerns, as a flurry of analysts have highlighted it as a key support zone for a continuing rally in the asset.
Besides, it also comes in tandem with a recent report from The Coin Republic, where we have warned caution as the Relative Strength Index (RSI) was nearing an “overbought” condition. Notably, the current RSI for the asset was at 52, indicating a neutral sentiment in the market.
The derivatives data also shows the waning risk‑bet appetite of traders. CoinGlass data showed a slight plunge in the XRP Futures Open Interest, but it still remained near the $9 billion mark.
Ripple Coin Selloff Spooks Investors
While there are several factors that might have contributed to the recent XRP price dip, analysts have flagged massive transfers into exchanges as a potential reason.
In a recent X post, analyst STEPH IS CRYPTO said that more than 320 million Ripple coins, worth $950 million, have been moved to exchanges recently.
This has spooked traders, with many anticipating it as a potential sell‑off move by market participants. However, profit‑taking is one of the integral parts of the crypto market, which might create some short‑term pressure on the asset.
For context, when an asset records a rally, sometimes market participants tend to exit the market to book profits. Despite that, market experts remain bullish on the long‑term trajectory of XRP price, given the recent developments in the market.
Analysts Reveal Key XRP Price Levels to Watch
The market pundits have warned of more pullbacks, potentially to $2.6 region, while sharing positive forecasts on the long‑term performance of the coin.
In a recent X post, analyst Dark Defender has highlighted $2.64 as a major support level for Ripple coin.
The expert noted that if XRP price loses the $2.64 support, it could trigger a massive sell‑off, potentially dragging down its value to $2.2. On the flip side, if XRP price clears the resistance at $3.66, the next target would be at $4.17.
Echoing a similar sentiment, EGRAG CRYPTO also shared a chart that indicates that Ripple coin price may dip to $2.77 or $2.65. However, if it manages to close above $3.2, it could target $3.44 next.
So, investors should exercise caution and watch if the crypto can close above the $3 mark in the daily chart. Failing to reclaim the support might cause a further dip in Ripple coin.
While another pullback to $2.6 seems feasible, it could also target a new high if it can hold on to the $3 support.