Profit-Taking Weighs on XRP, Will the Price Continue to Correct?

After surging through much of July, XRP is now under pressure as sellers regain short-term control. The token is currently trading around $2.95, down from its recent high of $3.66. This correction reflects weakening momentum and growing uncertainty about XRP Ledger’s practical use in institutional payments.

On the daily chart, XRP is pulling back after forming a double top near $3.66. A clear Change of Character (CHoCH) pattern has emerged below the $3.00 mark, signaling a potential short-term reversal. Price is also testing the $2.91 support level, which aligns with the 200 EMA on the 4-hour timeframe.

Technically, the outlook remains bearish. The DMI shows -DI crossing above +DI with a strengthening ADX, confirming downside momentum. Both the Parabolic SAR and MACD have flipped bearish, while the 1-hour RSI has dropped to 32—entering oversold territory but showing no bullish divergence yet.

Beyond technicals, on-chain data also shows a drop in investor confidence. Nearly $20 million in net outflows were recorded from spot exchanges in the past 24 hours. Meanwhile, recent comments from Ripple CTO David Schwartz have reignited debate over XRP Ledger’s adoption. Schwartz explained that regulatory restrictions prevent many banks from directly interacting with decentralized systems, though upcoming features like permissioned domains could address compliance issues.

Despite these developments, the lack of visible institutional activity may have dampened speculative sentiment in the short term. On the 4-hour chart, XRP is facing resistance from key EMAs at $3.09 (20 EMA) and $3.14 (50 EMA), while Bollinger Bands are expanding downward with price nearing the lower band at $2.94.

If the $2.91 support fails to hold, XRP could slide further toward the $2.66 liquidity zone, which previously acted as demand in late July. On the flip side, if bulls can push price back above the $3.02–$3.05 cluster with strong volume, a short-term bounce toward $3.20 remains possible.

For now, the bias remains tilted to the downside. Traders should closely watch the $2.91–$2.94 zone in the coming sessions, as a breakdown here could signal deeper losses heading into the weekend.