The price of XRP remains at 3 dollars as large investors continue to sell.

The price of XRP is currently sending warning signals as it falls below the $3 level, with bearish technical patterns appearing on the daily chart. This coincides with the sell-off activity of large investors and a decline in network activity.

XRP price chart suggests further fall

Since reaching a multi-year high of $3.66, the price of XRP has formed a descending triangle pattern on the daily chart, with a flat support level and a downward sloping resistance line.

The recent breakout above the upper trendline of the triangle is seen as a trap, as buyers struggle to maintain prices above $3, indicating a lack of strength.

If it cannot reclaim the $3 level soon, where the 50-day moving average is, XRP may fall to the next support level at $2.70.

Levels to Watch

Additionally, the next important levels to pay attention to are the 200-day moving average at $2.50 and the bearish target of the triangle at around $2.06, which corresponds to a 31% fall from the current price.

XRP price chart daily chart | Source: TradingViewThe analysis of XRP's descending triangle pattern is also supported by a bearish flag on the same time frame, warning of the possibility that the price could fall to a low of $2.40 after losing support at $3.

Daily chart XRP/USD. Source: Cointelegraph/ TradingViewAccording to a report by Coinphoton, if the price of XRP regains the $3 level, the buyers will try to continue the upward trend by pushing the price above the upper boundary of the flag at $3.20. If successful, the price of XRP could rise to $3.40 and then reach $3.66.

Whales sell XRP at $3

On-chain data shows that whales have taken profits in the recent surge to $3.10. The supply distribution index indicates a sharp decline in the amount of supply held by entities with balances of 1–10 million XRP. Currently, these addresses hold 6.79 billion XRP, marking the lowest level in the past six weeks.

The chart below shows that these "whales" have sold off more than 160 million XRP tokens, worth over $476 million at current prices, in the past two weeks. This indicates that large investors may be anticipating a fall in prices in the near future, despite expectations for the approval of a spot ETF and a Fed rate cut.

XRP supply distribution | Source: SantimentAt the same time, a significant increase in XRP reserves on exchanges has further heightened pressure on the price, according to data from Glassnode.

The chart below shows that the balance on exchanges has increased by 665 million XRP, reaching 3.94 billion XRP on Monday, compared to 3.3 billion XRP on August 27, increasing the available supply to sell.

XRP reserves on exchanges | Source: Glassnode## Activity on the XRP Ledger network is decreasing

The XRP Ledger has seen a significant fall in network activity over the past two months. On-chain data from CryptoQuant shows that the number of daily active addresses (DAAs) is currently much lower than the peak of 50,482 DAAs on July 18.

Currently, there are only about 21,000 active addresses daily, indicating that user transactions have fallen sharply, which may reflect a decrease in interest or lack of confidence in the short-term prospects of XRP.

XRP daily chart | Source: CryptoQuantThe number of new addresses has also fallen from a peak of 11,000 daily addresses in 2025 to just 4,300 in the same period, indicating a decline in network adoption and user participation.

History shows that a decrease in network activity often signals an impending stagnation or bearish trend, as low trading volumes reduce liquidity and buying momentum.

Mr. Teacher