XRP Risks 15% Drop After Losing $3 Support

• XRP slipped below the key $3 threshold, sparking fears of further decline.
• A break below $2.93 could intensify losses, with $2.60 as the next target.

On October 4, 2025, Cointelegraph reported that XRP slipped below the key $3 support, threatening a 15% decline to $2.60 due to bearish patterns and liquidation risks. This development has placed the cryptocurrency under increased selling pressure.

XRP’s price trajectory suggests a repeat of bearish patterns seen earlier. A rounded top formation, similar to one observed in September, is emerging. Back then, the pattern led to a sharp price breakdown, and now XRP is consolidating within a bearish flag. A close below the flag's support zone at $2.93 could validate the bearish setup, targeting $2.60—a level that coincides with the 200-day exponential moving average.

Another concern is the concentration of long liquidation risks. Over $500 million in long liquidations are clustered between $2.89 and $2.73. If XRP drops decisively below $3, cascading liquidations could amplify selling pressure and accelerate its descent to lower price levels. However, a bounce back above $3 would provide short-term relief, with bulls eyeing resistance around $3.18 to $3.40.

Technical indicators also point to potential trouble ahead. The four-hour relative strength index (RSI) is correcting from overbought levels, suggesting room for additional downside before nearing oversold conditions. Nonetheless, XRP may find interim support at key exponential moving averages, such as the 20-day EMA at $2.93 or the 50-day EMA at $2.52. A rebound from these levels could shift market sentiment and possibly push XRP back toward $3.

As of October 4, 2025, 17:08 UTC, XRP is trading at $2.95, marking a 2.7% dip in 24-hour trading volume, as per recent market data.

Market watchers are now closely observing XRP’s performance at these critical technical levels, as any recovery attempt holds significant implications for its broader price trajectory.