XRP Breaches $3 Support Amid $500 Million Sell-Off Threat

- XRP falls below critical $3 support, sparking sell-off fears. - Long liquidations and bearish patterns point to a potential 15% drop to $2.60. On October 4, 2025, Cointelegraph reported that XRP, the fifth-largest cryptocurrency by market capitalization, breached its critical $3 support level, a move that could trigger significant downside risks. Mounting market dynamics and technical indicators suggest a potential 15% decline to $2.60. Breaching the $3 level exposes XRP to a potential "long squeeze," which could intensify sell pressure, as data shows over $500 million in long liquidation positions are clustered between $2.89 and $2.73. Consequently, a decisive close below $3 could activate these liquidations and compound the downward momentum. Technical analysis also paints a grim outlook, with the XRP price chart showing a rounded top pattern transitioning into a bearish flag formation. This technical setup signals a likely continued downtrend. A similar structure appeared in September 2025 and preceded sharp price declines. In addition, the four-hour relative strength index (RSI) is retreating from overbought levels, which suggests the asset has ample room to fall further before it reaches oversold territory. XRP's immediate support lies at $2.93. If the asset fails to defend this level, it could solidify bearish momentum and pave the way for a drop to $2.60. This price point aligns with the 200-day exponential moving average (EMA), a critical long-term support indicator. On the flip side, if XRP reclaims the $3 threshold and stabilizes, it could recover toward the $3.20–$3.40 range. According to CoinMarketCap data on October 4, XRP was trading at $2.949 as of 18:08 UTC, and its 24-hour trading volume had dropped by 2.57%.