XRP Price Recovers 4.93% Despite Week of Heavy Institutional Selling
Joerg Hiller Aug 04, 2025 05:41
XRP trades at $2.97 with 4.93% daily gains, recovering from institutional selling pressure that drove nearly 9% decline earlier this week.
Quick Take
• XRP currently trading at $2.97 (+4.93% in 24h) • XRP RSI at 50.40 suggests neutral momentum after recent oversold conditions • Institutional selling pressure drove 9% decline on August 3rd before today's recovery
What's Driving Ripple Price Today?
XRP price has staged a notable recovery today, gaining 4.93% to reach $2.97 after experiencing significant volatility throughout the week. The most impactful recent development was the nearly 9% decline on August 3rd, when XRP dropped from $3.02 to a low of $2.75 amid heightened institutional selling pressure. Trading volumes more than doubled during this selling event, indicating substantial market participation.
The selling pressure continued from August 1st, when XRP price fell 8% below the $3.00 psychological level after hitting resistance at $3.17. Despite the recent bearish sentiment, institutional buyers have been absorbing excess supply, which contributed to today's recovery and suggests underlying demand remains strong.
Earlier regulatory developments provide important context for XRP's medium-term outlook. Ripple CEO Brad Garlinghouse's testimony before the U.S. Senate Committee on Banking, Housing, and Urban Affairs on July 30th focused on digital asset regulation and consumer protection. While this event had neutral immediate impact on XRP price, it reinforces Ripple's commitment to regulatory compliance.
XRP Technical Analysis: Mixed Signals Emerge
Ripple technical analysis reveals a complex picture with both bullish and bearish elements. XRP RSI currently sits at 50.40, placing it in neutral territory after likely being oversold during the recent decline. This neutral RSI reading suggests the selling pressure may be stabilizing.
The MACD histogram shows -0.0720, indicating bearish momentum for XRP despite today's price recovery. This divergence between price action and momentum suggests traders should remain cautious about the sustainability of the current bounce.
XRP's position relative to moving averages tells an interesting story. The current price of $2.97 sits below both the 7-day SMA at $2.99 and the 20-day SMA at $3.19, indicating short-term bearish pressure. However, XRP price remains well above the 50-day SMA at $2.66 and the 200-day SMA at $2.45, preserving the longer-term bullish structure.
Ripple's Bollinger Bands show XRP trading at a %B position of 0.2477, indicating the price is closer to the lower band at $2.76 than the upper band at $3.62. This positioning suggests XRP has room to move higher within its current volatility range.
Ripple Price Levels: Key Support and Resistance
Based on Binance spot market data, several critical Ripple support levels and resistance zones are worth monitoring. The immediate XRP resistance sits at $3.66, which aligns with both technical resistance and the strong resistance level. A break above this level could signal a resumption of the broader uptrend.
On the downside, XRP immediate support is located at $2.73, just below today's trading range. This level proved significant during the August 3rd selling event and will be crucial to hold for bulls. The next major Ripple strong support sits much lower at $1.91, representing a significant downside buffer.
The pivot point at $2.94 is particularly relevant given XRP price is currently trading just above this level at $2.97. Sustained trading above the pivot suggests potential for further upside, while a break below could signal renewed selling pressure.
With XRP's daily ATR at $0.19, traders can expect continued volatility in the near term. The 24-hour trading range of $2.83 to $3.03 demonstrates this volatility, with XRP price currently near the upper end of today's range.
Should You Buy XRP Now? Risk-Reward Analysis
The current setup presents different opportunities depending on trading style and risk tolerance. For swing traders, the recovery from oversold conditions combined with institutional buying interest creates a potentially attractive entry point near current levels. However, the bearish MACD momentum suggests waiting for confirmation above $3.00 before adding significant positions.
Day traders should focus on the $2.73 to $3.03 range established over the past 24 hours. A break above $3.03 could target the next resistance near $3.19 (the 20-day SMA), while a breakdown below $2.83 might retest the $2.73 support level.
Conservative investors may want to wait for XRP price to reclaim the 20-day SMA at $3.19 before considering new positions. This level represents a key technical milestone that would confirm the recent selling pressure has been absorbed.
Risk management remains crucial given the recent institutional selling activity. Stop-loss levels below $2.73 make sense for new long positions, while profit-taking near $3.19 could be prudent given the overhead resistance.
Conclusion
XRP price has shown resilience with today's 4.93% recovery, but the recent institutional selling pressure and bearish momentum indicators suggest caution is warranted. The key battle will be whether bulls can reclaim the $3.00 psychological level and push toward the 20-day SMA at $3.19. Traders should monitor volume closely, as sustained high volume on any breakout above $3.03 would strengthen the bullish case. Conversely, failure to hold above the $2.73 support could signal another leg down toward stronger support levels.
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