XRP Crashes After $3.40 Rejection — Next Stop $2.50?

3 mins mins

Key Insights

XRP loses $3.40 support, eyes $2.40–$2.60 entry zone as selling pressure increases.
Whales purchase 900M XRP post-SEC case settlement, boosting trading volume and open interest sharply.
Break above $3.27 could target $3.37, $3.51, and $3.60; drop below $2.95 cancels bullish scenario.

coincu A cartoon style XRP coin slipping on a banana peel off a c6de5bf0 7f7d 48f2 8bdf 0723d5cb1dec 1 — *XRP Crashes After $3.40 Rejection — Next Stop $2.50?*

XRP faced strong selling pressure after failing to hold the $3.40 level. Crypto analyst Michaël van de Poppe described $3.40 as a “crucial level” and noted that losing it could trigger a deeper correction. Following the rejection, the price moved lower, but has not yet reached the $2.50 region.

Funny, $XRP lost that crucial level at $3.40 and dropped south.

Didn't completely reach the region at $2.50, but it shows how fast things can correct.

Rejection at the resistance zone, indicating that we're likely going to be seeing some more downwards momentum.

I'm… pic.twitter.com/A7v11TNI48
— Michaël van de Poppe (@CryptoMichNL) August 12, 2025

Van de Poppe identified an area between $2.40 and $2.60 as a potential entry zone if the decline continues. On the XRP/USDT daily chart, the $2.20 range is marked as a prior breakout point, which supported the most recent rally.

Below that, a broader support zone between $1.82 and $1.57 is outlined for higher timeframe opportunities. The chart also shows that “all the liquidity has been taken” above $3.40, suggesting a sweep before the reversal.

Whale Accumulation and Trading Activity

Market analyst Ali Martinez reported that large holders purchased 900 million XRP within 48 hours. He linked this buying activity to the recent resolution of the Ripple Labs and US Securities and Exchange Commission case, which ended with both parties dismissing all appeals.

Multi-year triangle breakout in Nov 2024 put $XRP bullish target at $12.60. pic.twitter.com/ckjswAfPiv
— Ali (@ali_charts) August 12, 2025

Following this development, daily trading volume for XRP rose to $8.77 billion, representing a 69% increase from the previous day. Open interest in XRP derivatives also climbed, reflecting higher market participation from traders and institutions. Martinez stated, “Break it and $3.60 is next,” referring to the $3.27 resistance level.

On the 2-hour chart, XRP was trading within a downward channel, with $3.27 positioned at the channel’s upper boundary. Analysts note that a move above this level could open the path to $3.37, $3.51, and possibly $3.60.

Analyst CrediBULL Crypto pointed to the $2.95–$3.11 range as a preferred buying zone, saying,

“As long as the green zone holds we can target range highs or new ATH.”

His projection shows a potential rally from this range toward $3.60, with the possibility of new all-time highs if that level is cleared. A drop below $2.95, however, would invalidate this scenario.

Market Outlook

At the time of writing, XRP was priced at $3.14, down 3% in the past 24 hours but up 2% over the past week. Short-term traders are watching whether the $3.27 resistance can be broken, while others await a retest of the $2.40–$2.60 range for potential long entries. Regulatory clarity has boosted interest, but market direction remains tied to key technical levels.

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