XRP is currently caught in a tug-of-war between investors securing substantial profits and institutions viewing the dip as a strategic buying opportunity. While this has created resistance around the key $3 level, it also defines the current trading landscape.
Navigating Profit-Taking and Institutional Interest
The recent price movement of XRP highlights a clear pattern of profit-taking. After a significant rally, on-chain data has shown periods where millions in gains are being realized daily as early investors cash out. This activity has increased the supply of XRP on exchanges, creating a headwind that the price must overcome to resume an upward trend.
However, this selling pressure is not the full story. Analysis of large wallet activity, often called “whales”, indicates strategic accumulation is happening at lower price points. Data from late October 2025 showed addresses holding between 10 million and 100 million XRP added approximately 190 million tokens, worth over $505 million, around the $2.40 level. This suggests that while some are selling, large and potentially institutional players are using the dip to build positions, creating a dynamic battle in the market.
The Pivotal $3 Threshold and Key Technical Levels
The $3 price point has become a significant psychological and technical barrier for XRP. The asset has tested this level multiple times; for instance, in September 2025, XRP surged past $3 on the back of growing institutional interest and a new banking partnership in Europe, but it faced challenges sustaining that breakout due to rising exchange reserves.
For traders and investors, the key levels to watch are clear. A confirmed and sustained break above $3.00 is crucial for bullish momentum to regain strength, with the next resistance levels projected in the $3.05–$3.10 range. On the downside, critical support is found near $2.40, an area where significant whale accumulation has been observed. Should this support fail, the next significant level is positioned near $1.94.
The Road Ahead for XRP
The near-term trajectory of XRP will likely depend on a few key factors. The market will be watching for a sustained close above the $2.80–$2.90 resistance zone with rising volume, which could signal a convincing return to the $3 level. Furthermore, potential structural catalysts, such as a spot XRP ETF in the U.S., remain a significant focus for institutional capital, with decisions in late 2025 being closely watched.
In essence, the current phase for XRP is one of consolidation. The path of least resistance will be determined by whether institutional and whale demand can absorb the ongoing profit-taking. For now, the market is defining a clear range between the $2.40 support and the $3.00 resistance, and a decisive break from this range will likely set the direction for the next major move.
