XRP Struggles Below $3 as Risk-Off Sentiment Prevails
XRP slipped around 2% recently, underperforming the broader crypto market. The pullback comes amid profit-taking after ETF-driven rallies, weakening technical signals, and a broader shift toward risk-off sentiment in crypto markets. With Bitcoin dominance climbing to above 57, altcoins like XRP are losing momentum as traders rotate into perceived safer large-cap assets.
ETF Speculation Cools the Rally
Optimism around spot XRP and Solana ETFs drove much of the asset’s 2025 surge, but momentum has cooled. While Bloomberg analysts assign a 95% probability of approval by October, skepticism lingers about whether XRP can attract significant institutional demand. Unlike Ethereum’s DeFi ecosystem or Bitcoin’s store-of-value narrative, XRP lacks a strong “institutional use case” to anchor inflows.
The SEC currently faces 92 pending crypto ETF applications (Bitrue data), raising the risk of dilution. Even if XRP ETFs are approved, not all products may attract meaningful capital.
What this means: Traders question whether much of the upside from ETF approvals has already been priced in. This reassessment has fueled profit-taking after XRP’s 400% yearly gain.
Technical Weakness
From a chart perspective, XRP has entered a fragile phase. It broke below the 30-day SMA ($3.03) and the 23.6% Fibonacci retracement level ($3.23), reinforcing bearish bias.
Source: coinmarketcap
The technicals are following:
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RSI-14: 40.55, nearing oversold but not yet at reversal levels.
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MACD histogram: -0.0278, confirming bearish momentum.
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Support zone: $2.75–$2.88, combining the 78.6% Fib retracement with the August 29 low.
A close below $2.75 could trigger stops that send prices toward $2.50, though the 200-day EMA ($2.48) may cushion deeper downside.
Adding to the pressure, 24h trading volume stands at $6.6B, down 43% compared to July peaks, suggesting conviction behind recent moves is weakening.
Altcoin Sentiment Fades Away
Macro headwinds are amplifying rotation into Bitcoin. With the VIX volatility index up 12% this week, traders are favoring large caps over speculative altcoins. The Altcoin Season Index fell to 48/100, underscoring this shift.
XRP’s underperformance — a 1.4% drop versus BTC (-0.9%) and ETH (-1.1%) — highlights the pressure. Its market dominance at 4.36% could erode further if Bitcoin tests the $150K resistance in the near term.
Without a near-term catalyst, XRP risks lagging as capital concentrates in Bitcoin during periods of uncertainty.
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Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
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