Recently, the price of XRP has undergone a significant adjustment, attracting market attention. This pullback occurred after XRP reached a new high of $3.66 on July 18, after which the price began to decline. At the beginning of August, XRP lingered above $3, but ultimately fell below this psychological barrier. Notably, XRP fell by 6.62% yesterday, marking the largest single-day decline in a month.

Behind this price correction, there are several factors worth noting. First, market data shows that when the price of XRP exceeds $3, about 94% of XRP wallets are in profit. This situation is similar to when XRP reached a high of $1.96 during the bull market of 2020/2021, when the address profit rate also soared above 90%, which then triggered a large-scale profit-taking, leading to an 85% fall in XRP prices.

However, market analyst Winny pointed out that although history may repeat itself, this time XRP may show greater resilience. He emphasized that factors such as the rapidly growing number of whale wallets, increased network activity, and positive technical chart patterns may support the price of XRP. Although profit-taking and the overall market downturn pushed XRP to fall below $3, the current price still hovers around $2.9, seemingly struggling to return to this important psychological threshold.

From a technical perspective, although XRP is currently trading at $2.9, its daily Relative Strength Index (RSI) is only 43.05, far below the overbought level of 83.69 at the same price point in mid-July. This suggests that XRP may still have room to rise, and if it can break through the current resistance, it may have the potential to reach new highs.

Overall, the XRP market is at a critical moment. While it may face profit-taking pressure in the short term, considering the market fundamentals and technical indicators, XRP still has the potential to show stronger performance in the future. Investors should closely monitor market trends and weigh risks against opportunities.