Ripple’s token breaks critical floor of $2.07 amid rising volume, signaling a deeper correction ahead.
News background
- XRP continues to face conflicting forces as short-term technical weaknesses collide with strengthening institutional adoption.
- Spot XRP ETFs have now attracted nearly $850 million in inflows since launching in mid-November — one of the strongest altcoin ETFs ever — suggesting long-term capital continues to accumulate exposure.
- Despite this, broader market liquidity remains thin and leverage metrics across major exchanges show declining open interest, indicating a risk-off environment and reduced speculative participation.
- Combined with Bitcoin’s continued volatility below key weekly levels, altcoins like XRP remain highly sensitive to technical breakdowns even as fundamental demand builds in the background.
Technical Analysis
- XRP spent most of the session trying to stabilize above the $2.07 support zone, but the band revealed a consistent pattern of lower highs – a classic sign that buyers were losing control of momentum.
- Volume extended on each rejection near $2.11-$2.13, reinforcing seller dominance at overhead resistance.
- The decisive technical shift came in the last hour of the session: the $2.07 floor gave way as volume increased dramatically. A secondary volume break at 03:24 GMT XRP briefly pushed towards the $2.00 level, confirming that the initial collapse was not a false move, but the start of a continuation leg lower.
- Momentum indicators are now leaning heavily bearish, with the RSI trending down from intermediate levels and the MACD crossing deeper into negative territory. The breakdown turns previous support at $2.07 into immediate resistance – a key pivot level that must be regained to restore a near-term bullish structure.
Summary of price action
- XRP fell sharply from $2.20 to $2.10, down 5.7% over a 24-hour $0.13 range that delivered nearly 6% volatility. Attempts to reclaim $2.11 failed on weakening volume before the collapse intensified.
- At 19:00 UTC, volume rose to 94.0 million. — 68% above normal — marking the rejection at $2.13 and confirming the shift towards bearish continuation.
- Subsequent declines saw XRP testing levels near $2.09 and briefly flirting with the $2.00 handle as volume once again surged to over 1 million in a single minute.
- The price is now consolidating in the $2.10-$2.12 zone, but remains below all intraday resistance levels, leaving downward pressure intact.
What traders should know
- XRP is now trading at a critical juncture. The $2.07 failure — a level that held multiple retests earlier this week — opens a clean technical path toward $2.05 and, if broken, the deeper $1.90-$1.97 demand region highlighted by several analysts.
- Despite strong ETF inflows, institutional spot buying did not offset the short-term technical deterioration. Until the price recovers $2.07-$2.11 with conviction and increasing volume, the structure continues to favor the downside.
- A clean rejection point from $2.05, paired with a buyback at $2.11, would be the earliest sign that buyers are regaining momentum. Failure would expose the November lows and extend the bearish cycle into December.
