XRP price is currently trading at a very important threshold, and could be looking at a price reversal if the bulls fail to step up above $3.
The price of XRP might now be at risk, after the token experienced one of its worst weekly performances. While Bitcoin and Ether saw relatively small drops, XRP fell by more than 13%.
The decline was triggered by whale activity, large token movements, and market sentiment shifts.
Price at Risk Due to Whale Activity
One of the biggest shocks to the market came when Chris Larsen, Ripple’s co-founder, reportedly moved around $175 million worth of XRP. Out of that, about $140 million landed on crypto exchanges.
BREAKING:
CHRIS LARSEN WALLET MOVES 10,000,000 #XRP ($34.9M)
DESTINATION: BINANCE
WHAT’S HE UP TO? pic.twitter.com/tuSVf2pWUg
— STEPH IS CRYPTO (@Steph_iscrypto) July 25, 2025
These transfers started around July 17, just as XRP peaked at $3.66. The timing raised alarms and traders speculated that Larsen might be preparing to sell. As a result, many followed suit, which very likely sparked a sell-off.
This sudden change in confidence contributed heavily to XRP’s 13.5% drop and made it one of the worst performers among major tokens.
Over 90% of XRP Supply Is in Profit
Another factor behind the sell-off is the high level of profitable XRP holders. According to Glassnode, over 93% of the XRP supply was in profit when the token hit $3.60.
This is important because historically, when this percentage crosses 90%, many holders begin to take profits.
In contrast, Ethereum’s profit supply sits below 85%, which has not yet reached the sell-off zone. Historically, when too many investors are in profit, it often leads to price corrections, as we’ve seen with XRP.
Data also shows that many short-term XRP holders who entered the market within the last 1 to 3 months, bought at prices between $2.30 and $2.80. With XRP hitting $3.66 recently, this group was sitting on 20–30% profits.
Unsurprisingly, these traders started locking in gains when the price rose, which further added to the downward pressure.
Futures Data Reflects Lingering Risk
The XRP price drop also affected futures markets. Open interest on XRP futures fell by $2.4 billion, down from a record high of $11.2 billion. That’s a 21% drop in dollar terms and 12% lower in token terms.
Despite this, open interest is still higher than it was a month ago, which indicates that many leveraged traders are still holding positions. If the market turns volatile again, these positions could be liquidated and could cause further price drops.
In addition, monthly futures contracts for XRP are trading at a 6–8% premium, which shows neutral sentiment. However, without a surge in new buying, XRP is likely still exposed to downward risk.
XRP Price Faces Resistance at $3
Even though XRP climbed to $3.66 earlier this month, it has struggled to hold above the $3 level. This is partly due to low on-chain activity on the XRP Ledger.
Data from RWA.xyz shows that only $134 million in tokenized assets exist on the network, which is well below competitors like Avalanche with $190 million. In addition, XRP’s DEX volumes are not even in the top 50 blockchains, according to DefiLlama.
These figures indicate that despite recent price surges, the fundamental use cases for XRP are still lacking.
Overall, the bottom line is that XRP is at risk if selling pressure continues. There are also technical risks. If XRP drops below the $2.60 support level, it could trigger cascading liquidations in the futures market.
Unless on-chain activity and adoption increase, XRP may struggle to build or hold itself above the $3 mark.
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