• XRP down leg extends below the 100-day EMA as bulls struggle to steady recovery, targeting $3.00.
• Investors who purchased XRP below $1 have increasingly realized profits, absorbing the token's bullish momentum.
• Selling pressure expands as retail demand fades, increasing the risk of a prolonged decline.

Ripple (XRP) is on the back foot on Friday, marking two days of consecutive declines as prices across the cryptocurrency market wobble. Its technical picture leans bearishly, reflecting the negative sentiment in the market. 

Although Bitcoin hit a new all-time high of $126,199 on Monday, interest in altcoins remains generally subdued. Investors anticipate the US Federal Reserve (Fed) to cut interest rates by 25 basis points to the range of 3.75% to 4.00% later this month, an event that could help shape the bullish outlook.

Meanwhile, attention has shifted to technical levels as traders gauge whether XRP can defend its short-term $2.70 support and resume the uptrend, eyeing a break above the psychological resistance at $3.00.

Assessing the impact of profit-taking on XRP's bullish momentum 

XRP price traded at around $0.60 in November before ending the year with a parabolic move above $2.00. The rally extended in the first quarter of the year as the crypto market responded positively to United States (US) President Donald Trump's promise to transform the crypto industry by championing clear regulations that support innovation while protecting customers.

XRP hit a high of $3.14 in mid-January, but sold off amid profit-taking and risk-off sentiment, culminating in the infamous tariff-triggered crash in April to $1.62. Interest in the cryptocurrency market steadied in the months that followed through to mid-July when XRP reached a new record high of $3.66.

Since its all-time high, XRP has maintained a general downtrend, reflecting risk-off sentiment and an overall lack of conviction in altcoins.

According to Glassnode data, profit-taking is one factor dampening XRP's bullish momentum. Investors who purchased the token below $1.00 have increasingly realized profits, contributing to selling pressure.

"Two major realization waves—Dec 2024 and July 2025—have so far exhausted much of the market's bullish momentum," Glassnode states.

XRP Realized Profit by Profit Margin | Source: Glassnode

Technical outlook: XRP bears tighten grip 

XRP is trading at around $2.74 at the time of writing on Friday after attempts by the bulls to pare intraday losses failed, mirroring a massive bearish wave across the cryptocurrency market.

A sell signal from the Moving Average Convergence Divergence (MACD) indicator has been sustained since Thursday, suggesting that bears have the upper hand. If the blue MACD line remains below the red signal line, investors would be inclined to reduce risk exposure and XRP could extend the downtrend toward the short-term support at $2.70, tested in late September, and the 200-day EMA at $2.64.

XRP/USDT daily chart

On the flip side, a sustained move above the 100-day EMA resistance at $2.85 and the 50-day EMA at $2.91 may increase the probability of the XRP price breaking the downtrend and pushing for gains above $3.00.