The Ripple-linked token broke through several technical levels while whale transfers injected new uncertainty into an already fragile market structure.
News context
- XRP plunged 5.1% to $2.41 during Tuesday’s session, dropping from $2.54 as selling pressure overwhelmed key support areas.
- This move occurred without direct macroeconomic catalysts, instead reflecting a technically driven sell-off amplified by volume expansion and large-scale token movements across major wallets.
- Tennessee-based Canary on Monday filed a Form 8-A, a U.S. Securities and Exchange requirement for companies registering securities.
- The Canary XRP ETF would track the spot price of the fourth-largest digital asset by market capitalization.
- Whale activity has added to the volatility, with over $1 billion worth of XRP moving between custodial addresses linked to Ripple.
- Although on-chain data suggests the transfers were internal rather than exchange-related, the timing created new uncertainty during a period of increased technical fragility.
Price Action Summary
- The decline stabilized between $2.39 and $2.41 as short-term buyers stepped in to absorb the selling pressure. The token rebounded slightly from its low of $2.408, climbing to $2.418 during the overnight session.
- Hourly data showed a 4.5% rebound from session lows, with volume surpassing 1.1 million at 02:01 UTC, suggesting opportunistic accumulation at reduced levels.
- Despite the brief recovery, XRP remains technically constrained. Consecutive lower highs from the $2.54 high reflect persistent distribution patterns. Failure to regain $2.47 or reclaim broken support at $2.43 leaves the broader pattern vulnerable to further downside testing.
Technical analysis
- The broader structure is leaning lower as momentum indicators signal a deterioration in the medium term.
- The developing Death Cross pattern – where the 50-day moving average converges below the 200-day average – adds to the near-term caution.
- RSI readings are near oversold territory, hinting at possible near-term relief, but confirmation of the trend requires stronger participation from institutional buyers.
- The 38.2% Fibonacci retracement near $2.42 sets immediate resistance, while any recovery above $2.47 could restore balance in the near term. However, below $2.35, the risk of a prolonged decline towards the $2.20-$2.25 zone increases sharply.
What Traders Should Know
- XRP’s ability to defend the $2.39 to $2.41 band will determine whether the move will evolve into a technical rebound or extend into deeper correction territory.
- The lack of panic volume during the final leg down suggests controlled profit-taking rather than capitulation, although whale activity remains a wild card for sentiment.
- Institutional traders continue to monitor Ripple-related on-chain flows as potential leading indicators of liquidity-driven changes.
- With broader crypto sentiment, the next decisive move depends on whether XRP can reclaim $2.47 – its near-term pivot point separating stabilization from a sustained decline.
