Faces bearish cross risk, falls 5%

The Ripple-linked token broke through several technical levels, while whale transfers added new uncertainty to an already fragile market structure.

News background

XRP fell 5.1% to $2.41 during Tuesday’s session, dropping from $2.54 as selling pressure overwhelmed key support zones.
The move unfolded without direct macro catalysts and instead reflected a technical-driven sell-off reinforced by volume expansion and large-scale token movements across major wallets.
Tennessee-based Canary filed an 8-A form on Monday, a US Securities and Exchange requirement for companies that register securities.
The Canary XRP ETF would track the spot price of the fourth largest digital asset by market capitalization.
Whale activity exacerbated volatility, with over $1 billion in XRP moved between Ripple-linked escrow addresses.
While on-chain data suggested the transfers were internal rather than exchange-related, the timing created renewed uncertainty during a period of heightened technical fragility.

The decline stabilized near $2.39-$2.41 as short-term buyers stepped in to absorb the selling pressure. The token rebounded modestly from $2,408 lows and rose to $2,418 during the overnight session.
Hourly data showed a 4.5% rejection of session lows, with volume topping 1.1 million at 02:01 UTC, suggesting opportunistic accumulation at reduced levels.
Despite the brief recovery, XRP remains technically limited. Consecutive lower highs from the $2.54 peak reflect persistent distribution patterns. Failure to recover $2.47 or regain support broken at $2.43 leaves the broader setup vulnerable to further downside tests.

The broader structure is leaning bearish as momentum indicators mark deterioration across medium-term timeframes.
The developing Death Cross pattern – where the 50-day moving average is converging below the 200-day – adds to near-term caution.
RSI readings are hovering near oversold territory, suggesting possible near-term relief, but trend confirmation requires stronger participation from institutional buyers.
The 38.2% Fibonacci retracement near $2.42 defines immediate resistance, while any recovery above $2.47 could restore short-term balance. Below $2.35, the risk of an extended decline towards the $2.20-$2.25 zone increases significantly.

XRP’s ability to defend the $2.39-$2.41 band will determine whether the move develops into a technical rebound or extends into deeper correction territory.
The lack of panic volume on the lower leg suggests controlled profit-taking rather than capitulation, although whale activity remains a wild card for sentiment.
Institutional traders continue to monitor Ripple-related on-chain flows as potential leading indicators of liquidity-driven shifts.
With broader crypto sentiment mixed, the next decisive move depends on whether XRP can regain $2.47 – its near-term pivot that separates stabilization from sustained downside.