XRP fell sharply during Tuesday’s session, breaking below key support levels on exceptional volume as bearish momentum strengthened and traders targeted the psychological $2.00 zone.
News context
- XRP fell 6.4% to $2.20 over 24 hours from an intraday high of $2.35 amid heavy institutional selling pressure. The token traded in a wide 12.4% range as the broader crypto market stabilized, highlighting XRP’s isolated weakness.
- Trading volume reached 356.7 million, up 126% from the 24-hour average, confirming institutional participation in the outage sequence.
- Strong resistance persisted at $2.37, with rebound attempts at $2.33 and $2.23 repeatedly rejected.
- The failure to sustain gains above prior support marked a structural shift from accumulation to active distribution.
Price Action Summary
- Price action turned sharply bearish after the $2.17 breakout, pushing XRP to a session low of $2.08 before stabilizing around $2.20.
- Intraday data revealed a brief recovery from the $2.11 base, with the price climbing 4.5% to $2.209 on a short-term volume burst of 5.8 million tokens, although the rally stalled at $2.216 as liquidity faded.
- The late session rebound coincided with the news that the market capitalization of Ripple’s stablecoin RLUSD surpassed $1 billion, but technical momentum remained the main driver.
- A loss of momentum above $2.22 signaled limited conviction behind the recovery, leaving XRP trapped below previous breakdown levels.
Technical analysis
- The session confirmed a decisive bearish bias as XRP formed consecutive lower highs and lower lows from the resistance peak of $2.37.
- This model validates a short-term downtrend reinforced by volume expansion during sell-offs and contraction during rebounds – a classic signature of institutional distribution.
- Momentum indicators turned negative, with the Relative Strength Index near neutral after falling from overbought territory earlier this month.
- Failure to reclaim the $2.17 line suggests further weakness unless new demand emerges around the $2.08-$2.11 consolidation base.
- Although XRP’s structure hints at a possible oversold recovery, volume divergence and failed retests imply that rallies could continue to face strong resistance until overall market sentiment improves.
What Traders Should Know
- Traders are monitoring whether XRP can hold above the $2.08 support to avoid accelerating losses towards the psychological $2.00 level.
- A sustained recovery above $2.22 would be necessary to re-establish a bullish base, while failure to maintain current levels would risk another round of liquidation.
- Institutional volume spikes during declines confirm active repositioning rather than retail-driven volatility.
- For tactical traders, the $2.17 to $2.22 area represents the key inflection range that could set near-term direction.
