Ripple: Why XRP Price May Drop Sharply in the Near Future
Date: 2025-08-04 Author: Gabriel Deangelo Categories: CRYPTO PAYMENTS
The Ripple market has been showing alarming signs of weakening in recent days. Key metrics indicate growing uncertainty among traders and a decrease in demand, which could lead to a significant drop in the price of XRP in the coming trading sessions.
Investors are losing their appetite for risk
The Binance platform has seen a noticeable decrease in the Estimated Leverage Ratio (ELR) for XRP. According to CryptoQuant, this indicator has dropped to 0.36 — the lowest value in a month. This indicates that traders are becoming less inclined to use borrowed funds in trading this asset. The decrease in ELR indicates a decrease in confidence in the short-term price dynamics and the desire of market participants to avoid potentially unprofitable trades with high risk.
At the same time, the situation is also worsening in the spot market. Since July 29, according to Coinglass, negative net flows for XRP have been recorded, totaling over $222 million. This means that many investors have begun to sell off the token en masse, locking in profits. Amid the lack of a sufficient number of new buyers, this behavior may contribute to a further decline in the price.
A possible scenario for a decline to $2.50
Amid increasing pressure from sellers, technical analysis allows for a drop in XRP to $2.71. If this mark is broken, the next potential frontier may be the area around $2.50. However, if buyers become active and the price breaks the resistance level at $3, the path to growth up to $3.39 may open. Everything will depend on the balance between supply and demand in the coming days.
Conclusion
Amid declining trader activity and the dominance of sellers, XRP may come under pressure. Key indicators warn of a possible decline in the token's value. Investors should closely monitor the market behavior and prepare for possible volatility in the near future.
