XRP experienced significant losses on Friday, reaching its lowest price of the week amid escalating market pressures. The steady decline was marked by a significant uptick in trading volume, suggesting that investors were actively buying and selling positions.
The day began with XRP priced at $2.96, but as selloff activity intensified, the value quickly dropped. By midday, XRP had depreciated by almost 6%, reflecting the prevailing selling trend that had been evident since earlier in the week. There was a brief attempt to recover around 8:00 UTC, but it ultimately failed, resulting in further price drops.
Currently, XRP is at a critical level that traders are closely watching. In the derivatives market, pressure has intensified, with liquidations exceeding $543 million in just 24 hours.
Long-position holders were particularly affected, suffering losses of approximately $449 million. XRP-specific positions contributed to the turmoil, with nearly $23 million liquidated on the coin, and long traders facing losses of over 90%, underscoring the uneven nature of the current sentiment.
Beyond the crypto market, shifts in U.S. policy are impacting consumer markets. Donald Trump’s introduction of new tariffs, along with the elimination of the “de minimis” rule, which allows packages valued under $800 to enter duty-free, will have huge implications.
Retailers like Shein and Temu now face extra costs on affordable online orders. Analysts predict these changes could add around $13 billion in additional fees annually, further straining household budgets and driving up prices for everyday goods. This evolving situation poses challenges not only for traders but also for consumers.
XRP traders are currently holding their breath as the coin hovers dangerously close to a decisive price level. For the fifth time this month, the token has returned to the $2.80 zone, a threshold that now serves as both a lifeline and a trap. Whether this support holds or crumbles will dictate XRP’s direction in the coming seasons.
Inflation Data Adds Pressure
Fueling this uncertainty, the release of the core Personal Consumption Expenditures (PCE) index jolted the broader crypto market. Although the data matched forecasts, it confirmed persistent inflationary pressure in the U.S. economy. That report, alongside other macro signals, unleashed another wave of selling across risk assets, and digital currencies bore the brunt of the impact.
XRP is currently trading at a critical price point, just above $2.80, after briefly dipping to $2.77. The daily chart indicates buyers stepped in to defend this region, while the four-hour timeframe highlights ongoing efforts by bulls to stabilize the asset near this level. This mark has transformed into a key battleground, representing the fifth retest of $2.80 within a month.
Repeated visits to this threshold have formed a bearish pattern. A descending triangle has been visible since mid-July, showing consistent lower highs converging toward a flat base around $2.80. Such a setup usually precedes a downward breakout, making this current standoff particularly significant. To avoid deeper losses, bullish traders must keep XRP above this critical line.
Indicators Send Mixed Signals on XRP
Indicators offer a mixed picture. The relative strength index (RSI) is currently at 41, indicating some room for additional downside pressure.
Yet, the Bollinger bands indicate potential relief may be on the horizon. XRP touched the lower band earlier today, and historically, such movements often signal exhaustion of a downtrend. If this signal proves to be accurate, momentum could shift upward, pushing the token back toward the $3 mark.
On shorter timeframes, early signs of recovery are evident. The most recent four-hour candle reflects a rebound from $2.77 to $2.81, suggesting buyers are reentering the market. Analysts note this recovery coincides with trading activity during the 8:00 UTC session, when the coin briefly slipped to Bollinger’s lower band before reversing. This retracement, if sustained, increases the likelihood of an upward move in the near term.
Ultimately, XRP stands at a make-or-break level where market psychology and technical indicators intersect. Whether the coin breaks below the $2.80 support or stages a rebound, its trajectory in the coming days will likely be dictated.
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