XRP dipped below the $2.50 mark during Tuesday’s session, falling 1.2% to $2.49 as repeated rejections at $2.55 confirmed strong resistance. The decline came on the back of heavy institutional activity, with volume rising 85% above its recent average as sellers consolidated control at the upper end of XRP’s trading range.
News background
- The digital asset traded between $2.49-$2.55 during the 24-hour session, with price action dominated by technical flows rather than fundamental drivers.
- Three failed breakout attempts at $2.54–$2.55 defined the tone of the session, each accompanied by increased selling volume.
- Total activity climbed 85% above the 7-day average as total turnover reached 50.3 million tokens during the dip – confirming institutional-scale distribution at resistance levels.
- Market sentiment remains mixed following recent gains, with traders looking to see if XRP can sustain support above $2.49 amid a broader consolidation of high-beta cryptoassets.
Summary of price action
- XRP’s 24-hour session saw the price fluctuate within a $0.07 range, stabilizing near $2.497 after falling to intraday lows of $2.49. The 60-minute chart revealed brief attempts to recover $2.50.
- This behavior suggests institutional re-accumulation around the $2.50 mark – a level historically associated with short-term liquidity traps. Despite the pullback, buyers have defended the psychological floor through several retests.
- However, market microstructural analysis shows a shift in momentum as sell orders cluster above $2.54, limiting upside in the near term until volume profiles adjust to previous bullish patterns.
Technical Analysis
- The session’s repeated rejections of $2.55 confirmed a developing low-high formation on daily charts, indicating fading momentum after October’s rally.
- The $2.50 support continues to act as a key psychological and structural pivot; maintaining shutters above this threshold remains essential to maintain the medium-term bullish bias.
- Momentum indicators, including the RSI and MACD, are hovering near neutral territory, suggesting a potential pause phase rather than an outright reversal.
- Volume concentration at upper resistance levels – especially the 50.3M rise during the sell-off – confirms active profit-taking by major holders.
- Declining volume in the subsequent consolidation implies early signs of accumulation, with institutional buyers potentially bidding in layers near the $2.49-$2.50 zone.
What traders should see
- XRP’s near-term trajectory depends on whether the $2.49 support can withstand further testing.
- Sustained closes below this level could open downside towards $2.46, while a clean breakout above $2.55 would reset short-term sentiment and target the extension of $2.60.
- Traders are watching for confirmation through volume adjustment: expansion on upward moves will validate renewed demand, while continued easing activity will reinforce a range-bound outlook.
- Until directional confirmation emerges, positioning remains tactical – with pockets of liquidity at $2.49-$2.50 offers short-term opportunities for both mean retracement and breakout traders.
