Why is XRP Price Going Down Today?

As of August 12, 2025, XRP has experienced a notable downturn, declining for four consecutive sessions and losing approximately 8% from its recent highs, setting intraday lows at $3.11. Today, XRP is trading at around $3.1422, reflecting a slight increase of 0.5% since the beginning of the session. However, the cryptocurrency market as a whole, including popular tokens like Bitcoin and Ethereum, is exhibiting weakness, which has contributed to the pressure on XRP.

Understanding the Current Market Dynamics

The recent decline in XRP’s price can be largely attributed to profit-taking activities. After a remarkable rally, which saw XRP surge following the Ripple-SEC legal settlement, traders are rebalancing their portfolios. Following its impressive 208% volume surge to $12.4 billion, some investors are cashing in on their gains, creating a natural pullback. While trading volumes remain relatively high at $9.16 billion, signifying continued institutional interest, the profit-taking trend has undoubtedly triggered the recent price fluctuations.

Technical Analysis: Key Indicators

A detailed examination of the XRP/USDT daily chart reveals crucial technical levels:

• Support Level: The current strong support is positioned around $3.13, having held up well against selling pressure during recent sessions.
• Resistance Levels: Immediate resistance has built up in the $3.27-$3.31 range, presenting a hurdle for XRP to regain its momentum.
• Bearish Signals: A bearish pin bar formation on the daily chart has indicated selling pressure, especially when XRP attempts to approach the $3.31 resistance.

The heaviest selling pressure was noted during the 19:00 hour yesterday, where XRP saw a drop from $3.20 to $3.15 on a volume of 73.87 million, contributing to the bearish sentiment.

Key Technical Levels Summary:

• Immediate Support: $3.13
• Key Support: $3.00 (psychological level)
• Resistance: $3.27 (immediate), $3.31 (critical)
• Longer-term Support: $2.89 (50 EMA), $2.78 (50% Fibonacci retracement)

Broader Market Influences

The decline in XRP also mirrors the overall weakness in the cryptocurrency market. Bitcoin has failed to maintain momentum above significant levels, while Ethereum struggles below $4,300. Along with this, cryptocurrencies like Dogecoin have also seen declines, contributing to the risk-off sentiment across altcoins.

Market Factors Behind XRP’s Decline

1. Monthly Token Release: On August 1st, Ripple executed a routine release of 1 billion XRP tokens valued at around $3.28 billion from escrow. Despite clarifications that this was standard practice, the timing coincided poorly with XRP’s rally, generating selling fears among investors.

2. Profit-Taking After Legal Victory: The conclusion of the SEC legal battle, which had cast a shadow over Ripple’s operations for nearly five years, led to a euphoric period for XRP as investors rushed in. After substantial gains, the natural reaction has been for investors to take profits.

3. ETF Speculation Cooling: Recent developments regarding XRP ETF applications, including BlackRock’s reported denial of plans, have dampened bullish sentiment, despite the remaining applications possessing an estimated 85% approval probability.

4. Derivatives Market Signals: Data from XRP derivatives markets signal bearish sentiment, with open interest declining by 36% to $3.54 billion. Negative funding rates suggest a tendency towards short positions, which has contributed to the selling pressure. Interestingly, large investors, or whales, continue to accumulate XRP, with addresses holding 100 million to 1 billion XRP adding 900 million tokens worth $2.88 billion within just 48 hours.

Expert Sentiment and Price Predictions

Despite the current decline, many experts retain a bullish outlook on XRP’s medium-term prospects. Analysts have offered differing predictions for XRP’s future value:

• Tony "The Bull" Severino forecasts a 333% surge within 40 days, targeting $13.00.
• Peter Brandt anticipates a 60% rally to $4.47 in the coming months.
• Conservative models predict XRP will reach around $3.12 by August 31, 2025.
• More ambitious predictions hint at targets as high as $5.53 for the end of 2025.

What Traders Should Watch

As developments unfold, key indicators for traders to focus on include:

• Stability of Support at $3.13: This level’s performance in the face of further profit-taking will be crucial.
• Breakout Potential Above $3.27: A move above this resistance could signal a resumption of the upward trend.
• Institutional Inflows: Continued inflows post-settlement will signal confidence in XRP’s potential growth moving forward.

Summary of Concerns

The current decline in XRP is a multifaceted issue influenced by profit-taking, broader market dynamics, technical indicators, and certain market events. The regulatory overhang relief provides a solid foundation for potential growth, making the cryptocurrency worth watching closely as it navigates these turbulent waters. With various expert forecasts differing widely, XRP could either face further corrections or rebound strongly based on market conditions and investor sentiment.