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As investors booked more than $300 million in profits in just 24 hours. The pullback followed hawkish U.S. Federal Reserve minutes that dampened risk sentiment across global markets. Despite a recent push toward the $3 psychological threshold, the remittance-focused cryptocurrency now faces renewed selling pressure and critical support levels that could define its short-term trajectory.
$300 Million in Realized Profits Signals Investor Exit
XRP briefly reclaimed $3 on Wednesday before reversing sharply. Data from Santiment shows that investors realized over $300 million in profits during the past 24 hours. The selling pressure came from both long-term holders and short-term speculators, with profit-taking accelerating after the Federal Open Market Committee (FOMC) released July meeting minutes.
The minutes revealed heightened concerns among policymakers about persistent inflation, suggesting the Fed may resist easing rates in the near term. With inflation data exceeding expectations last week, risk assets, including cryptocurrencies, turned defensive.
“Over 90% of XRP’s circulating supply is currently in profit, so the temptation to lock in gains is high—especially in the face of macro uncertainty,” analysts at Santiment noted.
Exchange Inflows Confirm Selling Pressure
Exchange flow data reinforces the picture of heavy profit-taking. According to Coinglass, XRP’s net inflows surged to $76.8 million on Thursday, marking the highest level since July 19, when the asset reached a new all-time high. Rising net inflows typically signal increased selling, as tokens are moved onto exchanges for liquidation.
Despite this, XRP’s futures market has remained relatively stable. Open interest declined only modestly—by about 100 million XRP over the past week—suggesting that the latest downturn is being driven primarily by spot market activity rather than leveraged speculation.
“This is a healthy reset in the market,” said a derivatives analyst. “The fact that open interest hasn’t collapsed shows traders are not panicking. The spot market is simply digesting gains.”
Technical Outlook: $2.78 Support in Focus
On the technical front, XRP has struggled to break out of a symmetrical triangle pattern. Earlier this week, the token dropped below both the triangle’s lower boundary and the 50-day Simple Moving Average (SMA). A subsequent bounce brought the price back toward $3, but strong rejection followed.
At the time of writing, XRP trades around $2.85, consolidating just above the key $2.78 support level. Failure to hold this support could push the price toward $2.60, where the 100-day SMA provides additional backing.
On the upside, reclaiming the $3 psychological level is essential for bulls. A decisive break above would open the path to $3.39, the next major resistance, before XRP can attempt a run toward its all-time high.
Indicators paint a cautious picture. The Relative Strength Index (RSI) has dipped below neutral territory, signaling weakening momentum. Meanwhile, the Stochastic Oscillator (Stoch) has entered oversold levels, suggesting the potential for a short-term relief bounce if buyers step in at support.
Macro Pressure Weighs on Sentiment
XRP’s struggles mirror broader weakness in crypto markets following the Fed minutes. Risk appetite has faltered ahead of Fed Chair Jerome Powell’s upcoming speech at the Jackson Hole Economic Symposium. Market participants fear that Powell could reinforce a hawkish stance, reducing the likelihood of rate cuts in September.
“Markets are bracing for Powell’s comments,” said one macro strategist. “If he signals that rates will stay elevated for longer, it could put further pressure on speculative assets, including cryptocurrencies.”
The link between macroeconomic policy and digital asset flows has grown stronger in recent cycles. With U.S. Treasury yields rising and the dollar firming, cryptocurrencies face headwinds despite robust long-term adoption trends.
Investor Behavior: Between Conviction and caution
While profit-taking has been heavy, long-term conviction in XRP remains visible. The token has attracted steady interest from institutional investors, particularly in Asia, where remittance-based applications continue to expand. Analysts also note that XRP’s relatively low volatility compared to smaller altcoins has made it attractive as a medium-risk crypto asset.
Still, with most holders sitting on substantial gains after a strong rally earlier in the year, the market remains vulnerable to further waves of selling if macro conditions worsen.
“XRP is at a crossroads,” said a digital assets fund manager. “Support at $2.78 will be critical. If it holds, the token could stabilize and resume its uptrend. But a break lower would confirm that profit-taking has more room to run.”
Outlook: Short-Term Pressure, Long-Term Opportunity
In the immediate term, XRP traders must watch the $2.78 support and $3 resistance levels closely. A consolidation between these zones is likely until a major macro or technical catalyst emerges. Powell’s speech at Jackson Hole may provide such a trigger.
For long-term investors, however, the current pullback may represent a healthy reset in an otherwise bullish market structure. Rising adoption, regulatory clarity in key regions, and continued integration of blockchain-based remittance solutions support XRP’s long-term narrative.
As profit-taking cools and technical levels are tested, XRP’s ability to defend support will determine whether it resumes its push higher—or retreats further into correction territory.
