XRP Tests $2.70 Support as Investor Confidence Craters

• XRP faces a critical price test amid declining investor activity.
• Reduced on-chain metrics and futures interest hint at a broader sentiment shift.

XRP’s price is under pressure as it fights to stay above the $2.70 support level, according to Cointelegraph on September 1, 2025. The cryptocurrency has dropped 1.78% over the past 24 hours and is trading at $2.78, reflecting investor caution amid a broader downtrend.

On-chain metrics reveal a significant decline in activity across the XRP Ledger. Active addresses have fallen from 50,000 in mid-July to roughly 19,250 by the reporting date, according to Cointelegraph. Futures open interest also decreased markedly from $10.94 billion to $7.7 billion over the same period, signaling reduced investor confidence in the asset’s potential.

Technical analysis indicates that XRP’s daily chart is forming a descending triangle pattern, which typically suggests bearish momentum. Analysts note that if the $2.70 support level fails, the price could drop further, potentially towards $2.08 over the coming weeks. The Moving Average Convergence Divergence (MACD) indicator suggests a potential bearish crossover in September, reinforcing the short-term negative outlook.

Despite these challenges, a bullish reversal remains possible. Cointelegraph reported that if XRP successfully defends the $2.70 support level, the cryptocurrency could rally back towards $3.70. However, market sentiment appears cautious, with the Crypto Fear & Greed Index registering at 46, firmly in the "fear" zone.

The overall caution around XRP reflects a broader risk-off sentiment in the cryptocurrency market. According to the same analysis, the "fear" sentiment in the Crypto Fear & Greed Index marks a shift from “greed” recorded a month ago. Historical trends suggest that macroeconomic uncertainty often drives this risk-off behavior, prompting investors to favor traditional safe-haven assets over higher-risk digital assets.

As of September 1, 2025, 15:12 UTC, XRP (XRP) is trading at $2.769, with a 1.762% decrease in 24-hour trading volume, according to CoinMarketCap.