Investor Profit-Taking Pressure

Chart: https://www.gate.com/trade/XRP_USDT

In July 2025 and early August, XRP’s price briefly topped $3.6, attracting strong investor interest. As the price climbed, many investors chose profit-taking, driving increased profit-taking pressure across the market. Trading volumes surged in the short term. Extensive profit-taking accompanied the surge in trading volumes and triggered a price correction. For example, between August 19 and 20, XRP declined from $3.02 to $2.90—a drop of about 4%. Such profit-taking is routine in crypto markets, especially after rapid price increases.

Macroeconomic Factors

The crypto market reacts sharply to macroeconomic shifts. Recently, the U.S. government announced that it would not expand its cryptocurrency holdings, reducing demand for digital assets. Further, uncertainty surrounding Federal Reserve policy has increased investor caution. On August 18, XRP dropped 3.8%, with Bitcoin and Ethereum experiencing similar declines. These macroeconomic developments have a direct impact on confidence in cryptocurrencies, putting downward pressure on assets like XRP.

Technical Indicators Weakening

Technical analysis remains a key tool for investors evaluating market momentum. Lately, technical indicators for XRP have softened. Notably, XRP slipped below the critical $3 support level, flagging a risk of further short-term declines. The sharp drop between August 19 and 20 reinforced this weakening trend. Investors should proceed cautiously with XRP and avoid chasing rallies, as indicated by these technical indicators.

Rising Competition

New projects in crypto are intensifying competition for established tokens. For instance, Remittix (RTX), an emerging payment platform, has drawn substantial investor attention. Remittix delivers low-fee crypto-to-fiat transfer services and raised significant funds during its presale. Unlike Ripple, which focuses on institutional clients, Remittix targets individual users and offers user-friendly payment solutions. New competitors are likely diverting capital away from XRP, reducing demand and impacting price performance.

Conclusion

Overall, XRP is under pressure from several directions: investor profit-taking, macroeconomic headwinds, weakening technical indicators, and intensifying competition. Together, these factors may push XRP’s price lower. In this environment, investors should exercise caution, stay alert to market developments and adjust strategies accordingly.