XRP dipped sharply during Tuesday’s session, breaking below key support levels on exceptional volume as bearish momentum strengthened and traders targeted the $2.00 psychological zone.
News background
- XRP fell 6.4% to $2.20 in 24 hours, coming off an intraday high of $2.35 amid heavy institutional selling pressure. The token traded over a wide range of 12.4% as the broader crypto market stabilized, underscoring XRP’s isolated weakness.
- Trading volume rose to 356.7 million, representing a 126% increase over the 24-hour average, confirming institutional participation in the breakdown sequence.
- Strong resistance persisted at $2.37, with rebound attempts at $2.33 and $2.23 repeatedly rejected.
- The failure to sustain gains over previous support marked a structural shift from accumulation to active distribution.
Summary of price action
- Price action turned sharply bearish after the $2.17 crash, bringing XRP to a session low of $2.08 before stabilizing around $2.20.
- Intraday data revealed a brief recovery from the $2.11 base, with the price rising 4.5% to $2.209 on a short-term volume burst of 5.8M tokens, although the rally stalled at $2.216 as liquidity dwindled.
- The late-session bounce coincided with news that Ripple’s RLUSD stablecoin passed $1 billion in market cap, but technical momentum remained the primary driver.
- Momentum losses above $2.22 signaled limited conviction behind the rally, leaving XRP trapped below previous crash levels.
Technical Analysis
- The session confirmed a decisive bearish bias as XRP formed consecutive lower highs and lower lows from the resistance peak at $2.37.
- The pattern validates a short-term downtrend reinforced by volume expansion during sell-offs and contraction during rebounds – a classic signature of institutional distribution.
- Momentum indicators turned negative, with the relative strength index trending near neutral after falling from overbought territory earlier in the month.
- The failure to regain the $2.17 line suggests further weakness unless renewed demand emerges around the $2.08-$2.11 consolidation base.
- While XRP’s structure hints at a possible oversold rally, volume divergence and failed retests suggest the rally may continue to face major resistance until broader market sentiment improves.
What traders should know
- Traders are watching to see if XRP can hold above the $2.08 support to avoid accelerating losses towards the $2.00 psychological level.
- A sustained rally above $2.22 would be needed to re-establish bullish footing, while failure to sustain current levels risks another liquidation wave.
- Institutional volume increases during declines confirm active repositioning rather than retail-driven volatility.
- For tactical traders, the $2.17-$2.22 zone represents the key bending range that could define short-term direction.
