XRP extended its decline on Tuesday, falling 6% to $2.25, as whale selling and a sharp trendline break accelerated bearish momentum. The move, coupled with a 15% drop in open interest, keeps pressure on bulls ahead of a looming death cross setup and a retest of key support at $2.20.
What you need to know
• XRP fell from $2.39 to $2.25 (-6%), confirming a break below the multi-month ascending trendline.
• Whale wallets unloaded around 900,000 XRP over five days
• Open interest fell about 15% as leveraged long positions unraveled.
• Volume reached approximately 193.7 million during the outage period.
• Lower-high structure now established at $2.39 → $2.37 → $2.33
News context
The sell-off follows the whales’ persistent breakdown since late October, with large holders losing positions following repeated failures above the 200-day moving average. Macroeconomic risk also resurfaced in risk assets as open interest rates compressed across major currencies, suggesting it was deleveraging – not a retail panic flow – that drove Tuesday’s move. Analysts point to an impending death cross pattern as momentum indicators decline decisively, while some positioning desks have flagged bids near $2.20 as the next pocket of liquidity for potential stabilization.
Price Action Summary
• Inability to reclaim the $2.37 to $2.39 supply zone
• Progressive distribution of lower treble signals
• Trendline Violation Triggered Accelerated Algorithm Selloff
• Volume increased approximately 87% over the 24-hour average during an outage.
• Session low printed at $2.24 before a modest resumption of bidding to $2.25.
Technical analysis
• Trend: break of the ascending structure, bearish dynamics
• MA: 50-day MA falling towards 200 days → risk of death
• Support: $2.25 base in the short term; Psychological layer from $2.20 to $2.00; deeper pocket around $1.85
• Resistance: The $2.37-$2.39 area remains the dominant supply wall
• Volume: Expansion confirms distribution; exhaustion at the end of the session portends a short-term break
What traders are looking at
• If $2.20 absorbs selling pressure or reaches $2.00.
• Confirmation (or fade) of the Death Cross configuration
• Stabilization of open interest rates after a 15% flush
• Whale wallet behavior after dumping around 900,000 tokens
• Recovery of the range from $2.37 to $2.39 as the threshold for invalidating increases.
