• XRP slips towards $2.70 as whales and institutions fuel heavy selling.
• Ripple’s tech progress contrasts with short-term bearish pressure.
• Fed caution and rising yields have dampened the crypto market sentiment.

The past week has brought turbulence for XRP as the token struggles to defend key levels in the face of a weakening crypto market.

Once seen as one of the strongest performers of 2025, XRP is now under pressure, leaving many wondering whether the latest decline is a temporary setback or the start of a deeper slide.

Bearish pressure mounts below $3

XRP has failed to hold above the $3.00 level, a psychological threshold that traders had hoped would serve as a springboard for further gains.

Heavy liquidations across the broader market, combined with profit-taking near resistance, dragged the token down to the $2.80 zone.

Recently, it has slipped further, touching lows of $2.75 after a 6% drop in a single day, coinciding with Bitcoin’s fall below $109,000 that triggered a chain reaction across altcoins, including Ethereum, which has tumbled around 8% to $3,800.

Institutions and whales weigh in

Behind the price drop lies a wave of institutional selling and large whale movements that have shaken sentiment.

Roughly $277 million worth of XRP have changed hands in a short span, with reports indicating that whales moved nearly 160 million tokens—worth close to half a billion dollars—in mid-September.

These moves have added to the selling pressure, wiping nearly $19 billion off XRP’s market value within a week and breaking the momentum that had carried it above $3 earlier in the month.

Economic headwinds add to the strain

The challenges facing XRP are not just internal.

Wider economic factors have also played a role in the token’s decline.

Comments from US Federal Reserve Chair Jerome Powell, warning that inflation remains a concern and that significant interest rate cuts are unlikely, dampened risk appetite.

Rising Treasury yields have made investors more cautious, diverting attention away from riskier assets such as cryptocurrencies.

This backdrop has made it harder for even promising developments within Ripple’s ecosystem to translate into price gains.

Ripple has been busy rolling out new projects, including the launch of its stablecoin RLUSD, the integration of an Ethereum-compatible sidechain, and the steady growth of wallets on the XRP Ledger, which now exceeds seven million.

While these steps strengthen the network’s foundation, they are yet to counterbalance the weight of market-wide pessimism.

Eyes on the $2.70 support

For now, eyes are on whether XRP can hold above the $2.75 threshold, with $2.70 emerging as the next critical support level.

From a technical analysis standpoint, the token is trading below its 30-day moving average of $2.93, signalling that sellers remain in control.

The Relative Strength Index (RSI) has dropped below 38, nearing oversold territory.

The MACD has also turned bearish, further amplifying the bearish momentum.

A deeper dip could extend losses, but a bounce from these levels may suggest selling exhaustion and open the door to a short-term recovery.

The next steps will likely depend on Bitcoin’s performance, as a $23 billion options expiry looms large and promises to add volatility to the entire crypto sector.

Should Bitcoin stabilise, XRP may find room to climb back above $3, restoring some momentum. If not, the slide toward $2.70 and potentially lower remains a distinct possibility.

The Czech Republic is gearing up to adopt a Bitcoin reserve. However, Czech Finance Minister Zbynek Stanjura has expressed concerns over the country’s Bitcoin strategy. This could pose a setback to the country’s BTC plans as it looks to get ahead of other countries, including the United States.

Czech Finance Minister Opposes Bitcoin Reserve Proposal

In response to the Czech National Bank (CNB) Governor Aleš Michl’s recent Bitcoin proposal, Finance Minister Zbynek Stanjura expressed worries over Bitcoins’s instability and volatility. According to a Bloomberg report, Stanjura posited that Bitcoins are unsuitable to be a national reserve, citing its highly volatile nature. He also added that the government does not have the power to override the monetary authority’s decisions.

Highlighting Bitcoin and other cryptocurrencies’ unstable nature, the Finance Minister stated,

I personally have misgivings about it. The central bank should symbolize stability. If you look at bitcoin trading, it’s definitely not a stable asset.

Plans To Adopt A Bitcoin Strategy

Recently, CNB Governor Aleš Michl revealed the country’s plan to introduce a BTC reserve. Hailing the BTC strategy as a game-changer, Michl unveiled that the national bank intends to invest at least 5% of its total €140bn of reserves in BTC.

Referring to US President Donald Trump’s crypto policies and Bitcoin reserve plans, Michl stated,

For the diversification of our assets, Bitcoin seems good. Those [Trump] guys can now kind of create some bubble for Bitcoin, but I think the trend would be an increase without those guys as well, because it’s an alternative [investment] for more people.

Senator Cynthia Lummis Urges US to Embrace Bitcoin Reserve

In response to the Czech Republic’s BTC initiative, Senator Cynthia Lummis urged the United States to implement its Bitcoin plan. She wants the US to take the lead in adopting Bitcoin reserves ahead of other countries.

Notably, Senator Cynthia Lummis took to X to urge the US to take swift action on the Bitcoin bill, emphasizing the need for decisive movement on the proposal.

Despite the growing anticipation, there has been no official confirmation on the US strategy for a Bitcoin reserve. All eyes are now on Congress, awaiting approval to adopt Bitcoin as the country’s reserve asset. This potential development could mark a groundbreaking milestone in the US financial landscape.

Who Will Win the Bitcoin Race- Czech or US?

Significantly, at least 14 US states have already proposed or approved the Bitcoin reserve bill. These states include Florida, New Hampshire, Pennsylvania, Ohio, North Dakota, Oklahoma, Texas, Wyoming, Massachusetts, South Dakota, Utah, Arizona, Illinois, and Kentucky. It is noteworthy that Arizona became the first US state to approve the Bitcoin bill, followed by Utah. However, there hasn’t been a final decision on the US’ adoption of the strategic Bitcoin reserve.

Meanwhile, the Czech Republic’s Bitcoin agenda is facing struggles as the Finance Minister raises concerns. As of now, it remains unclear which country will lead the global rush of acquiring cryptocurrency.

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Nynu V Jamal

Nynu V Jamal is a passionate crypto journalist with three years of experience in blockchain, web3, and fintech spheres. She has established herself as a knowledgeable and engaging voice in the cryptocurrency and blockchain space. Her experience as an Assistant Professor in English Language and Literature has further added to her quest for crafting informative, well-researched, and accessible content.

Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.