XRP plunged sharply on Wednesday as sellers breached key support zones, triggering widespread liquidation across exchanges, while institutional flows drove the heaviest trading activity in over a week.
News background
XRP fell 7.5% in 24 hours, falling from $2.40 to $2.22 in a broad-based selloff that accelerated after the token broke technical support at $2.28. The collapse played out alongside a surge in trading volume, reaching 137.4 million, representing an 84% increase over the daily average.
The sales wave peaked at 15:00 GMT as cascading stop orders intensified the downward pressure and forced XRP through several short-term support levels. The decline spanned a $0.21 range, highlighting increased volatility as traders liquidated leveraged positions.
In the late session, trading activity fell sharply to 7.0 million as selling momentum cooled. The sharp decline in volume reflected exhaustion among short-term participants after one of the steepest intraday declines this month.
Summary of price action
The price briefly stabilized near $2.20 before rising modestly to $2.224, forming a series of higher lows until 02:12 GMT as short-term buyers stepped in at oversold levels. The move reflected tactical accumulation rather than directional conviction as the broader structure remained bearish.
Despite the rejection, XRP failed to regain the $2.28 breakout level, confirming the shift in market control to the sellers. Consolidation around $2,218 dominated the closing hours, highlighting indecision amid depleted liquidity. The pattern reflects earlier crash phases where low-volume stabilization precedes either short-lived recoveries or further declines.
Technical Analysis
XRP’s daily structure now confirms a firm bearish bias after several failed retests of the $2.40 resistance zone. The decisive break below $2.28 marked the completion of a descending channel formation visible on 4-hour charts, a pattern typically associated with continuation setups in corrective markets.
Momentum indicators turned sharply negative as the RSI returned from neutral levels into mildly oversold territory, while MACD readings crossed into bearish alignment for the first time in two weeks. These signals support the short-term continuation thesis unless XRP regains the $2.28-$2.30 pivot range.
Volume analysis reinforces the bearish view, with the 84% rise during the crash contrasting sharply with declining participation during the recovery – a classic signature of institutional distribution rather than retail-driven volatility.
What traders should know
Traders are focused on whether $2.20 can hold as temporary support amid continued selling pressure. A decisive break below this level would reveal $2.10-$2.00, with previous consolidation zones providing limited technical cushioning.
Conversely, recovery efforts require a firm close above $2.28 to neutralize the current downtrend and open a path towards $2.35-$2.40 resistance. The short-term market sentiment remains fragile, as derivatives data shows rising short exposure and reduced spot demand.
