XRP broke below support at $2.50 during Tuesday’s session, falling 5% to $2.47 as institutional selling pressure accelerated across major exchanges. The breakdown confirmed a decisive shift in structure after weeks of tight consolidation, with volume and chart patterns now aligned towards a deeper corrective phase.
News background
- The token’s 24-hour session saw prices drop from $2.60 to $2.47, marking one of the biggest single-day drops this month.
- The breach of the $2.50 psychological level triggered a wave of algorithmic and institutional selling, driving trading activity to 169 million tokens, up 158% from the 24-hour average.
- XRP’s market underperformance contrasts with broader crypto strength, suggesting rotation away from altcoins as risk appetite cools amid waning speculative participation.
- The break reinforced strong overhead resistance at $2.60, where repeated points of rejection in recent weeks had put a cap on upward momentum.
Summary of price action
- Selling took place in structured phases throughout Tuesday’s trading. The initial collapse began at 13:00 UTC, where heavy selling volume drove the price decisively through the $2.50 support, igniting a cascade that extended to intraday lows near $2.38.
- Subsequent price stabilization formed around the $2.43-$2.46 range, suggesting the early stages of a potential consolidation base.
- Short-term momentum readings indicated exhaustion as volume fell into the close, a dynamic that often precedes temporary pauses in trending declines.
- At the microstructural level, the 60-minute data showed two distinct distribution waves as XRP fell from $2,472 to $2,466.
- Successive hourly volume spikes of 2.8 million and 2.6 million tokens – each exceeding 300% of the hourly average – confirmed continued institutional control over intraday flows.
Technical Analysis
- XRP’s collapse marks a continuation of its lower-high, lower-low pattern that began after the failed retest of the $2.60 resistance.
- The session’s volatility range of 8.8% underscores aggressive liquidation and profit-taking by major holders, consistent with recent chain signals of stock market inflows.
- Momentum indicators such as the RSI have shifted into neutral-to-bearish territory, while the MACD is showing growing downward divergence. The $2.40-$2.42 area now acts as immediate technical support and a close below this band could open further downside towards $2.30-$2.33.
- Volume analysis remains decisive – the turnover of DKK 169 million. during the collapse confirms institutional participation rather than retail panic, while declining activity in the late session implies that the bulk of the distribution may have already been completed.
What traders should see
- Traders are closely watching if $2.43-$2.46 can develop into a stable accumulation zone or if a clean break below $2.40 accelerates the capitulation.
- Regaining the $2.50 level would be required to neutralize short-term bearish momentum and re-establish a constructive setup targeting $2.60.
- Until then, rallies against resistance are likely to face supplies from trapped long and short profit takers.
- Broader sentiment remains cautious amid risk-off rotation, with derivatives positioning showing falling open interest and modest increases in short exposure across perpetual futures markets.
