XRP Drops Below $3 – Here’s Why the Price is Down Today

• XRP slides under $3 as weak momentum pressures investor sentiment.
• Strong US data cuts Fed rate expectations, hitting crypto valuations.
• Market eyes Jackson Hole for signals guiding XRP’s next move.

XRP fell under the $3 level today as renewed selling pressure swept across the cryptocurrency market. The token closed at $2.94, down 4.59 percent, marking a sharp shift in sentiment after stronger US economic data reshaped expectations for Federal Reserve policy.

The wider market was not spared either, as its total capitalization fell by $71 billion to $3.85 trillion in 24 hours. Bitcoin dropped 1.9 percent to $115,409, and Ethereum dropped 3 percent to trade around $3,200. The coordinated decrease reflected the increasing conservatism among investors as they reconsidered their exposure to risk.

Technical Indicators Point to Weakening Support

TradingView data showed XRP slipping below its 20-day simple moving average at $3.09. The Bollinger Bands show resistance at around $3.36, and immediate support is observed at about $2.81.

Meanwhile, the Relative Strength Index declined to 44.27, and momentum was weakening further as the indicator shifted further below the neutral 50 mark. This loss of strength raises concerns about XRP’s ability to maintain stability above the $3 threshold.

Also Read: Metaplanet Expands Bitcoin Treasury With Additional 775 BTC Purchase

Economic Data Alters Fed Outlook

The downturn in XRP and the broader market coincided with the release of new economic figures. Producer Price Index rose 0.5 percent in July, beating the 0.3 percent expectations, and retail sales grew 1.2 percent. These numbers strengthened indicators of US economic strength.

According to market trackers, the data reduced confidence in a September interest rate cut. Expectations went down to 84 percent compared to 98 percent, and risk appetite was re-evaluated. Increased interest rates are likely to drag down the speculative markets, where investors will move toward less risky assets and cryptocurrencies.

Broader Market Trends

Altcoins reacted unevenly to the shift in sentiment. Chainlink jumped 1.83 percent to $25.07, backed by sound technical indicators showing an uptrend. Solana was resilient with a 0.5 percent loss, whereas Polygon added 2.3 percent on the back of stable decentralized finance. Dogecoin, nevertheless, dropped 4 percent as network security issues resurfaced.

Meanwhile, the Altseason Index increased to 53 percent, indicating a better performance of altcoins compared with Bitcoin. Bitcoin’s dominance fell to 58.9 percent, which indicates a rotation of capital in the market.

Outlook for XRP

Regulatory developments added another layer of attention as Japan approved JPYC Inc. to issue the first yen-denominated stablecoin. Meanwhile, tokenized assets under management hit $270 billion, underscoring Ethereum’s expanding role as a settlement platform.

For XRP, the immediate challenge is regaining momentum above $3. With technical indicators leaning bearish, the Jackson Hole symposium later this week may determine whether policy guidance from the Federal Reserve can stabilize sentiment or deepen the downturn.

Also Read: Bitcoin, Ethereum, and Top Altcoins Plunge as Crypto Market Weakens

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