XRP is dropping primarily due to heavy profit-taking by traders following a recent rally. After XRP's price surged in July and early August, many holders chose to lock in gains, causing selling pressure. This correction is also linked to a broader downturn in the cryptocurrency market, with Bitcoin and Ethereum also declining as traders secure profits. Additionally, rising short positions and liquidation pressures have intensified bearish sentiment on XRP. Technical analysis points to key support levels near $2.85 and $2.70, with the price struggling to hold above the psychological $3 mark. Broader market factors such as inflation concerns and cautious investor sentiment around global macroeconomic events are also contributing to the decline. Despite the drop, some see the dip as a buying opportunity amid uncertain market conditions.
