XRP has slid 5% in the past day, slumping below $3 and struggling to recover amid a market-wide bloodbath.

While the move unsettled some traders, influential voices within the XRP community continue to urge calm. They frame the dip as both temporary and even a golden opportunity.

Sub-$3 XRP a “Psyop”

In reaction to the XRP dip, advocate Alex Cobb dismissed the sentiments surrounding the current price action. He argued that XRP under $3 is “not real,” but rather a tactic to shake investors out of their positions. “It’s a psyop to steal your coins,” he said.

Cobb suggested that institutions like BlackRock could be the real beneficiaries if retail holders panic-sell their tokens cheaply. He predicted XRP would rebound to $3.60 before the end of the month.

He went on to reinforce his long-standing view that XRP is not just another crypto asset but “digital oil” to power the financial world. In particular, Cobb framed XRP as the greatest investment asset of all time.

This bold perspective is rooted in XRP’s inherent utility and the perceived future value its proponents ascribe to it. They view the current price range as undervalued and see a future where it trades closer to Bitcoin’s level.

For instance, Cobb’s December outlook for XRP sees the coin trading above $20, a price that would give it a trillion-dollar valuation, a landmark only Bitcoin currently enjoys.

“Massive Blessing” in Buying XRP Below $3

Notably, the belief that XRP is undervalued is widespread among members of the XRP community. Just two days ago, Coach JV, another influential voice in the community, described XRP trading under $3 as “a massive blessing.”

He stressed that wealth is not built when prices are up, but during quiet, sideways markets — periods when most investors grow impatient. Using a farming analogy, Coach JV likened today’s XRP market to planting seeds in barren soil. The real harvest will come to those who consistently accumulate through uncertainty and hold through downturns.

Essentially, the theme is that XRP remains “cheap,” and its future upside could be life-changing — at least in the eyes of the XRP Army. Within the community, projections for XRP’s eventual price range widely, from $10 to $100, to $1,000, and even $10,000.

Critics React

These bullish views often face resistance from other market participants. Responding to Cobb’s post, critic John Cash challenged the feasibility of the widely touted XRP valuations, pointing out that XRP’s massive supply limits its price potential.

He argued that even in an extreme scenario, XRP couldn’t reach $100 without an implausible $10 trillion market cap.

However, while many of the lofty targets stretch the bounds of market cap assumptions, they reflect the belief among long-term holders. Many argue that once institutional adoption accelerates, today’s sub-$3 levels will look like a historic bargain.

A top market analyst has identified the level XRP must breach to soar to “Valhalla” as well as the region that could trigger the next bear market.

EGRAG Crypto recently discussed these levels as XRP battles the bears at $3. Notably, his analysis uses a logarithmic regression model and a formation he calls the “Bent Fork,” which shows both the upside potential and the danger zones for XRP.

Importantly, his chart features a regression channel drawn on a logarithmic scale. This model highlights previous cycles and how XRP moved in parabolic waves during these cycles.

XRP Needs to Close Above $3.65 to Aim for Valhalla 

According to his charts, XRP now sits in its third major cycle and is pressing against the mid-point of the channel. Further, the Bent Fork identifies arches and boundaries on this structure, showing where momentum could either break free or collapse.

Specifically, EGRAG pointed to the July 18 high at $3.65 as the major breakout trigger. He noted that if XRP can close above this level, the market will push into price discovery and set up a run toward a region he calls “Valhalla,” which aligns with the $23 price mark.

Interestingly, this target matches the upper boundary of the Bent Fork, which has provided a guide for his cycle analysis. Similar breakouts in earlier cycles produced massive gains that culminated in a rally to the upper boundary, and EGRAG believes this one could follow the same path.

Particularly, when XRP soared in Cycle 1, it reached the upper arch of the Bent Fork at an all-time high of $0.0614 in December 2013. A similar run during Cycle 2 saw XRP hit the upper arch at $3.3 in January 2018. Now, in Cycle 3, the upper arch sits at $23, and EGRAG expects a similar run.

A Drop to $1.62 Would Mark the Start of a Bear Market

However, the bullish case depends on XRP holding important support levels. The first level sits at $2.90, which marks the middle of the regression channel. As long as the price stays above this zone, the bullish structure remains intact. 

EGRAG noted that if XRP slips below it, the next strong defense appears at $2.65. A quick dip under that level may not matter, but closing the day below it would weaken the setup. This aligns with his previous suggestion that it is all noise until XRP breaks above $3.65 or dips below $2.65.

Meanwhile, another important marker sits at $2.33, which aligns with the 21-week exponential moving average. EGRAG describes this level as the final lifeline for the bullish structure. A fall through $2.33 would make it much harder for XRP to reclaim its former all-time high, let alone aim for the higher arches of the Bent Fork.

If the slide continues, $1.90 becomes the line where bearish momentum begins. Dropping through that level would flip the market tone from hopeful to defensive. 

Meanwhile, the danger zone would deepen at $1.62, which EGRAG marks as confirmation of a full bear market. A close below that point, especially under the mid-arch of his model, would indicate the start of a downward cycle.

Right now, XRP trades for $2.92, still holding the primary support at $2.9. Notably, the larger cycle structure leaves room for upside as long as XRP maintains its ground above this region or the lower support levels.

Data shows XRP profit-taking volume by long-term holders recently reached a new yearly peak, mirroring the distribution trend from December 2024.

XRP ended last month, July, on a bearish note after reaching a new peak of $3.66 earlier in the month. While the recovery that emerged this month, August, pushed XRP above $3 for an extended period, recent data from Glassnode has identified what contributed to the late-July crash.

XRP Profit-Taking Volume Hits $375M

Notably, Glassnode took to X today to reveal the extent of profit-taking trades by investors of the top five assets over the past month. According to the market analytics platform, the recent market downturn, which has resulted in the global crypto market cap losing over $200 billion over the past three days, was due to these profit-taking trades.

For XRP, Glassnode revealed that the heightened profit-taking volume did not emerge recently, as is the case with other assets, but took place last month. Specifically, XRP profit-taking volume skyrocketed to $375 million on July 24. While investors holding for 1 month to 1 year contributed massively, the largest volumes came from those holding for at least 2 years.

This large distribution event occurred amid the panic that ensued as a result of the broader market crash on July 23, which saw XRP collapse by a massive 10.34% in a single day. This marked its highest intraday drop in three months. Following this slump, investors panicked and began taking profit, leading to the $375 million XRP profit-taking volume the next day, on July 24.

According to Glassnode, this marked XRP’s largest profit-taking volume this year, and mirrored the extent of the distribution observed by the market during the December 2024 rally. For context, XRP soared nearly 290% from November to December 2024, retesting the $3 mark and leading to a similar heightened profit-taking event.

Meanwhile, after the latest July 24 volume, XRP held strong for a few days before going into a death spiral that led to a 13.2% collapse by Aug. 2. XRP has since recovered from this drop, but Glassnode’s recent analysis suggests the most recent crash below $3 could also be a direct product of such profit-taking trades.

XRP Address Profitability Remains High

Interestingly, a previous report from The Crypto Basic confirmed that Glassnode data also revealed a rise in XRP address profitability above 90%. Specifically, as XRP held above $3, addresses seeing gains on their holdings surged to 94%. 

Citing this data, market commentator Winny suggested at the time that this could lead to heightened XRP profit-taking volume. This trend has since materialized, contributing to the recent crash below $3 for XRP. However, XRP has shown more resilience than in previous instances of profit-taking trades due to multiple bullish factors.

Meanwhile, despite the recent pullback, trader Xaif Crypto confirmed today that 93% of XRP addresses are still in profit, citing Santiment data. Notably, since July, address profitability has averaged 90%. While this is a positive sign, it also shows that there could still be increased XRP profit-taking volumes going forward.