After experiencing a sudden 10% price drop earlier this week, XRP has rebounded from just under $3, sparking speculation that the token may have found a short-term bottom. As of July 24, 2025, XRP is trading back near the $3.20 level, regaining composure after a bout of profit-taking and broader market turbulence. The sharp but brief dip triggered panic among some retail investors—but analysts suggest the move could be a healthy correction within a larger bullish structure.
With technical indicators stabilizing and on-chain activity showing renewed accumulation, the question now is whether XRP’s bounce is the beginning of its next leg upward.
What Caused the Drop?
XRP’s pullback from its recent local high near $3.40 came amid a broader altcoin correction triggered by Bitcoin’s brief consolidation under $122,000. As capital rotated back into BTC and Ethereum, many large-cap altcoins—including Solana, Avalanche, and XRP—faced momentary liquidity outflows.
For XRP in particular, the drawdown was also influenced by a large transfer of nearly 110 million XRP from an exchange-linked wallet to Binance, sparking fears of a sell-off. However, follow-up analysis by Whale Alert and Santiment showed that the transaction was likely an internal movement rather than a liquidation.
The correction, although sharp, was absorbed quickly. Volume surged on the rebound candle, and order books showed strong support around the $2.95–$3.00 range—suggesting that the dip was more technical than fundamental.
Technical Structure Remains Intact
Despite the dip, XRP’s broader uptrend is still intact. The daily chart reveals a textbook ascending channel, with the recent drop touching the lower boundary before rebounding on significant volume.
The Relative Strength Index (RSI) cooled down from overbought levels and is now comfortably back in neutral territory. Momentum oscillators like the MACD (Moving Average Convergence Divergence) have begun curling upward again, hinting at a possible bullish crossover.
Key support remains at $2.90, while the next major resistance lies at $3.60. A break above that level, analysts believe, could signal a renewed rally toward $4.00, especially if accompanied by broader market strength.
On-Chain Metrics Support Reversal Narrative
On-chain data further reinforces the argument for a short-term bottom. According to Glassnode and Santiment:
- Active addresses holding between 10,000 and 1 million XRP have increased their net holdings by 4.2% since the drop, suggesting smart money accumulation.
- Exchange outflows have risen sharply, with over 220 million XRP withdrawn from trading platforms in the past 48 hours.
- Funding rates on XRP futures have reset to neutral, indicating that the market has flushed out excessive leverage.
These signals mirror similar patterns seen in past local bottoms, where whale accumulation and cooling derivatives markets laid the groundwork for sustainable upward moves.
Fundamental Tailwinds Remain Strong
Beyond technicals, XRP continues to benefit from a favorable macro environment. Ripple’s partnerships with financial institutions have expanded in 2025, with new corridors established in Brazil, South Africa, and Indonesia.
RippleNet’s On-Demand Liquidity (ODL) product—which utilises XRP for cross-border transactions—has reported a 31% increase in quarterly volume. Meanwhile, the Ripple Liquidity Hub 2.0 continues to attract midsized fintechs seeking automated access to global liquidity.
Legal clarity also remains a tailwind. With the SEC lawsuit largely resolved and XRP gaining clarity as a non-security in most jurisdictions, institutional interest in the token is steadily growing. Custody solutions from Anchorage and Fireblocks now support XRP natively, enabling deeper institutional participation.
Market Sentiment and Community Buzz
The XRP community, known for its resilience and vocal support, has responded to the price recovery with renewed optimism. Social sentiment metrics have turned bullish once again, according to LunarCrush, with XRP-related keywords trending across crypto Twitter and Reddit.
Some community analysts believe this dip was the “last shakeout” before XRP makes a push toward its macro target of $5–$6. Others point to the rising influence of whale wallets. suggesting that XRP is increasingly being treated as a long-term hold rather than a speculative trade.
Either way, retail and institutional traders alike are eyeing the $3.50 level as a key battleground for momentum.
What to Watch Next
In the short term, XRP bulls will be looking for:
- A confirmed breakout above $3.60 with strong volume
- Continued exchange outflows and whale accumulation
- Rising funding rates without excessive leverage
- Macro support from Bitcoin holding above $120,000
If these conditions align, a push toward $4.00 and beyond could materialise swiftly. Conversely, failure to reclaim $3.60 may lead to consolidation or a retest of the $2.90–$3.00 zone.
Conclusion: A Strategic Correction or Bull Trap?
XRP’s sharp rebound from just below $3 suggests that the market views the recent dip as a technical correction, not a trend reversal. Backed by strong on-chain support, growing adoption, and legal clarity, XRP appears to have formed a resilient base that could act as a springboard for further gains.
While short-term volatility remains a factor, the broader trend continues to favor the bulls. For now, the $3.00 level may be remembered as a key inflection point—one where XRP once again proved its ability to recover under pressure.
