XRP Price News: Volumes Double as XRP Loses Key $3 Support – Big Drop Coming?

XRP (XRP) has dropped by nearly 5% in the past 24 hours and has moved below its key psychological support of $3 as crypto liquidations skyrocketed.

On Sunday, $1.5 billion worth of long positions in the crypto market were flushed out. This has been the largest single-day wipe-out in the past 6 months, emphasizing the strength of the selling pressure.

Total Liquidations (Last 6 Months) – Source: CoinGlass

Of that total, nearly $75 million corresponded to XRP longs, making it the second largest spike in liquidations for bulls during this same period.

The move occurred just a few days after the Federal Reserve cut interest rates for the first time this year as analysts expected.

This drop could mark the beginning of a strong pullback as early buyers who fully priced in a post-rate-cut boost have moved to take a big chunk of their profits off the table.

XRP Finally Got Its Own Spot ETF

Last week, the first spot exchange-traded fund (ETF) linked to XRP was launched in the United States by REX-Osprey. This fund has already attracted $10 million from investors and could become a popular vehicle among both retail and institutional players over the next few weeks.

Comparatively, the Solana + Staking ETF (SSK) launched by this same firm has approached the $300 million mark in assets under management (AUM) as interest in altcoins seems to be growing across the regulated markets.

The Ripple ecosystem has been engaging in multiple initiatives to accelerate its growth now that the regulatory landscape in the United States has shifted. New leadership at the Securities and Exchange Commission (SEC) and the passing of the Genius Act have paved the way for a new era for the crypto industry.

The project has been dedicating some effort to grow its recently-launched stablecoin Ripple USD (RLUSD) as this product could become a key puzzle piece to expand the network’s core use case.

Ripple USD (RLUSD) Market Cap – Source: CoinMarketCap

The market cap of this stable asset has been steadily expanding but it seems to have reached a ceiling at $730 million. The next stop for RLUSD could be $1 billion. If it surpasses that mark, this would push the token to the top 10 in the stablecoin category less than a year after its launch.

Despite today’s strong retreat and key support break, the long-term prospects for XRP are still bullish as crypto’s use cases continue to expand.

XRP Bounces Off Last Line of Defense at $2.75

Looking at the 4-hour chart, it seems that the selling pressure stopped once the token hit the $2.75 level. This has been a key area of support for XRP in past instances twice and could once again cushion the decline.

XRP/USD Daily Chart (Coinbase) – Source: TradingView

If we get a strong bounce off this level, followed by a bullish breakout above $3.1, it could anticipate a strong move to $3.6 in the near term, meaning a 31% upside potential for this altcoin in the near term.

The Relative Strength Index (RSI) has reached oversold territory in this lower time frame. This indicates that bearish momentum has accelerated. Sellers seem to have gotten ahead of themselves, which also favors a bullish short-term outlook.

Meanwhile, if XRP moves below $2.7, that could set the stage for a much deeper correction to $2.2 and may be an early sign that this bull market has reached a turning point.