Here’s the current price of XRP to set the stage:

Why Is XRP Price Dropping?

1. Bearish Technical Structure & Market Sentiment

XRP has been trapped within a descending parallel channel since August 2, showing ongoing sell-side pressure and repeated failed breakout attempts .

It’s trading in a narrow range between a demand zone ($3.00), with recent attempts to break above resistance losing momentum

Momentum indicators are mixed—while Money Flow Index (MFI) shows some buy-side strength, the Chaikin Money Flow (CMF) remains negative, pointing to a stalemate between buyers and sellers .

2. Rising Selling Pressure & Exchange Reserves

XRP held across exchanges continues to climb (e.g., Binance reserves surged from 2.92B to 3.6B), suggesting accumulation on exchanges likely for selling and higher volatility .

Open interest is dwindling too. Combined with ETF uncertainty, this retreat of speculative futures activity is weighing on recovery potential .

3. On‑Chain Weakness & Lower Demand

Network metrics signal a sharp decline: daily active addresses (DAAs) have plunged from highs of over 500–600k down to just ~30–34k, meaning fewer transactions and lower demand .

Open interest has dropped by roughly 30%, reflecting that traders are unwinding positions rather than building new ones .

XRP remains stuck below key resistance levels—particularly moving averages in the $2.22–$2.40 zone—further constraining upside momentum .

4. Macro & Regulatory Uncertainty

Broader crypto markets are subdued amid macroeconomic concerns—rising inflation expectations, tight Fed policy, and trade tensions—which ripple into XRP’s performance .

Uncertainty around a spot XRP ETF approval persists, despite strong interest from firms like Grayscale and WisdomTree. Without this institutional catalyst, upward momentum is limited .

Summary Table

Factor Impact on XRP Price

Technical bearish setup Continues to cap rallies and extend downtrend

Rising exchange reserves Indicates stronger selling pressure