XRP fell below the $2.50 mark during Tuesday’s session, falling 1.2% to $2.49 as repeated rejections at $2.55 confirmed strong resistance. The decline was driven by strong institutional activity, with volume surging 85% above the recent average as sellers consolidated their control at the upper end of XRP’s trading range.
News context
- The digital asset traded between $2.49 and $2.55 during the 24-hour session, with price action dominated by technical flows rather than fundamental factors.
- Three failed breakout attempts between $2.54 and $2.55 set the tone of the session, each accompanied by high selling volume.
- Overall activity soared 85% above the 7-day average, with total turnover reaching 50.3 million tokens during the decline, confirming institutional-scale distribution at resistance levels.
- Market sentiment remains mixed after recent gains, with traders wondering if XRP can maintain support above $2.49 amid broader consolidation in high-beta crypto assets.
Price Action Summary
- During the 24-hour session of XRP, the price fluctuated within a range of $0.07, settling near $2.497 after dropping to the intraday low of $2.49. The 60-minute chart revealed brief attempts to reclaim $2.50.
- This behavior suggests institutional reaccumulation around the $2.50 mark – a level historically associated with short-term liquidity traps. Despite the decline, buyers defended the psychological floor thanks to several new tests.
- However, analysis of market microstructure shows shifting dynamics as sell orders cluster above $2.54, limiting near-term upside until volume profiles realign with prior uptrends.
Technical analysis
- The session’s repeated rejections at $2.55 confirmed the development of a lower-level formation on the daily charts, indicating a slowing of momentum following the October rally.
- $2.50 support continues to act as a key psychological and structural pivot; maintaining closes above this threshold remains essential to preserve the bullish bias in the medium term.
- Momentum indicators including the RSI and MACD are hovering near neutral territory, suggesting a potential pause phase rather than an outright reversal.
- The concentration of volume at higher resistance levels – particularly the 50.3 million peak during the sell-off – confirms active profit-taking by larger holders.
- Lower volume during subsequent consolidation implies early signs of accumulation, with institutional buyers potentially layering their bids near the $2.49-$2.50 area.
What traders should watch out for
- XRP’s near-term trajectory depends on whether the $2.49 support can withstand further testing.
- A sustained close below this level could pave the way for a decline towards $2.46, while a clear break above $2.55 would reset near-term sentiment and target the $2.60 extension.
- Traders await confirmation through volume alignment: upward expansion would validate renewed demand, while continued decline in activity would reinforce limited prospects.
- Until directional confirmation emerges, positioning remains tactical – with pockets of liquidity at $2.49 to $2.50 providing short-term mean reversion and breakout opportunities for traders.
