XRP retreated to around $3.00 on Sept. 19, just one day after briefly reclaiming $3.10 for the second time in a week. The token’s decline, reported at roughly 3.8% over 24 hours, broadly tracked weakness across the wider digital asset market. Even so, the pullback stood out because XRP had recently been supported by a string of favorable developments that, at least on paper, could have strengthened bullish sentiment.
Among those developments were the launch of the first U.S.-listed exchange-traded fund offering exposure to XRP and Grayscale’s debut of a multi-asset crypto exchange-traded product. Ripple, the company closely associated with XRP, also drew fresh attention after unveiling a tokenized asset framework in partnership with DBS and Franklin Templeton. Yet despite that steady flow of constructive headlines, XRP was unable to sustain its recent push higher, raising fresh doubts about the market’s near-term appetite for another breakout.
Price Reaction Undermines Recent Optimism
The latest drop effectively erased much of XRP’s weekly progress and mirrored a broader retracement across other large-cap cryptocurrencies. That reversal has reignited debate over whether XRP can still make a meaningful run toward new highs before year-end. Market participants had been watching the asset closely after its repeated attempts to establish footing above $3.10, but the inability to hold those levels has shifted attention back to downside risk.
According to crypto analyst Casitrades, the failure to print a fresh local high may be a warning that XRP is entering what the analyst described as a “deeper correction.” In comments posted on X on Sept. 19, Casitrades argued that the current setup increasingly resembles an ABC corrective pattern, with the C-wave potentially targeting the low $2.90 area.
More specifically, the analyst identified $2.92 to $2.94 as the most important zone to watch if selling pressure deepens. That range, according to the analysis, aligns with both the 0.618 Fibonacci retracement and a measured C-wave extension, making it a technically relevant support area. In other words, if XRP cannot stabilize above nearby support, traders may begin looking to the low $2.90s as the next area where a more meaningful reversal could emerge.
Why $2.98 Matters in the Near Term
The immediate battleground, however, appears to be $2.98. Casitrades characterized this level as a critical support line that may determine whether XRP consolidates and regains strength or continues to slide. If that level breaks decisively, the analyst believes the market will likely test the $2.92–$2.94 region next.
The reasoning is tied to momentum signals across multiple timeframes. On the one-hour and four-hour charts, the analyst said XRP is not yet showing bullish divergence, a condition many traders often look for as an early sign that downside momentum is weakening and a reversal may be close. The absence of that signal on higher timeframes suggests the market may still need another leg lower before establishing a firmer base.
That said, the picture is not uniformly bearish. On the 15-minute timeframe, Casitrades observed a bullish divergence, which was described as helping trigger a short-term reaction from the $3.00 level. This suggests that buyers are not entirely absent and that short-term rebounds remain possible. But the analyst also emphasized that without confirmation from higher timeframes, those moves may prove temporary rather than trend-changing.
Technical Setup Points to a Decision Zone
In practical terms, XRP appears to be approaching a decision point. If bulls can successfully defend $2.98, the token may move into a period of consolidation before attempting another push toward resistance. Casitrades identified $3.25 and $3.44 as key upside levels in that scenario. A stabilization above support, followed by renewed momentum into those resistance zones, would help restore confidence that the recent drop was only a short-lived correction rather than the beginning of a deeper retracement.
On the other hand, if $2.98 fails to hold, the case for a move into the low $2.90s becomes stronger. The $2.92–$2.94 area would then become the next major zone to monitor for evidence of stronger demand, a more durable rebound, and a possible shift in momentum. Traders who focus on technical structure will likely be watching closely for confirmation there, especially if broader market weakness persists.
Positive News Has Not Yet Translated Into Price Strength
One of the more notable aspects of XRP’s recent performance is the disconnect between headlines and market reaction. Under normal circumstances, the launch of a U.S.-listed XRP ETF, Grayscale’s new crypto ETP, and Ripple’s collaboration with major financial institutions on tokenized assets might have been expected to bolster sentiment. Instead, XRP has struggled to convert those catalysts into a sustained upward move.
That does not necessarily invalidate the longer-term significance of those developments. Institutional products and infrastructure partnerships can still matter for adoption, liquidity, and market perception over time. But in the short run, price action suggests traders are placing greater weight on technical conditions and broader market sentiment than on individual bullish announcements.
For now, XRP’s outlook appears finely balanced between support defense and renewed downside pressure. The token has already shown it can briefly reclaim higher levels above $3.10, but maintaining those gains has proven difficult. As a result, market attention is narrowing around a handful of technical thresholds that could define the next move.
If buyers hold the line above $2.98, XRP may have room to regroup and retest overhead resistance. If not, the market could soon be forced to confront the analyst’s lower support target near $2.90. Either way, the coming sessions are likely to be important for determining whether XRP’s latest retreat is merely a pause in a broader uptrend or the start of a more extended corrective phase.