Strong institutional activity is driving a 38% surge in volume, while XRP lags a broader crypto rally, signaling hidden selling pressure beneath the surface.
News background
- XRP rose 0.50% to $2.0925 in Tuesday trading, but significantly underperformed the broader crypto market by 1.77%. Despite the modest gains, trading volume rose 37.94% above weekly norms, indicating significant institutional participation.
- However, the increased volume failed to translate into sustained upward momentum. XRP briefly pierced $2.12 resistance and touched $2.17 before reversing sharply. The move suggests that large holders used the liquidity window to liquidate positions rather than accumulate.
- The backdrop of the session reflected broader rotational themes: majors such as BTC and SOL attracted capital inflows, while XRP’s order books showed more aggressive spread of the supply side of liquidity, consistent with distribution during rallies.
Technical Analysis
- XRP’s inability to hold above $2.12 confirmed this level as anchored resistance.
- The pattern of a breakout followed by rejection immediately followed by rejection typically signals distribution, especially when accompanied by high volume – 189.7 million tokens exchanged hands during the experiment, which far exceeds trend norms.
- The structure now reflects a short-term compression between $2.083 and $2.17, forming a broad equilibrium zone where liquidity is being shuffled between buyers and sellers.
- The higher lows from $2.083 provide some stabilization, but the inability to sustain momentum beyond $2.12 keeps the bias neutral-to-bearish.
- Momentum oscillators are showing a mild bullish divergence from the $2,083 low, but this is offset by declining volume on recoveries and the overhead supply created by the failed breakout.
- Until XRP demonstrates conviction through $2.17 – with volume validation – the technical setup remains range with latent selling pressure.
Summary of price action
- XRP opened the session with mild strength, but quickly fell to $2,083 before stabilizing. A two-step rally took the token towards $2.17, but strong selling immediately occurred at that level.
- Volume during this push rose to 184% above the 24-hour SMA, highlighting institutional involvement in the reversal.
- From there, XRP drifted lower into the $2.09-$2.10 band, where it consolidated to the close. The $2.09 level acted as psychological and technical support, absorbing flows but failing to produce meaningful upward follow-through.
- The session ultimately reflected controlled distribution: strong volume on advance, weak continuation afterward, and consistent seller presence above $2.12.
What traders should know
- XRP’s ability to hold $2.09 will dictate near-term direction. A break through this level reveals $2.05 and $2.00 as the next support zones.
- Recovery calls for a clean recovery claim of $2.12 and eventually $2.17 – levels where strong selling pressure occurred. Without strong volume confirmation, any move into these zones risks further distribution.
- Institutions appear to be active, but not accumulative. Their participation is more along the lines of liquidity gathering during spikes in volatility rather than building directional exposure.
- If the broader crypto strength continues, XRP may limp until the overhead supply dissipates. Watch for narrowing ranges and falling volume – early signs of accumulation shifting back in favor of buyers.
