The token breaks key support as volume surges 251% during defense of the psychological level at $2.00.
News context
- US spot XRP ETFs continue to generate uninterrupted inflows, with cumulative demand now exceeding $1 billion since launch – the fastest pace of early adoption for any altcoin ETF.
- Institutional participation remains strong even as retail confidence remains subdued, contributing to market conditions in which large players accumulate in times of weakness while short-term traders are reluctant to re-enter the market.
- The macroeconomic environment for XRP remains dominated by capital rotation into regulated products, with demand for ETFs offsetting declining open interest in derivatives markets.
Technical analysis
- The defining moment of the session came during the surge from $2.03 → $2.00, when volume reached 129.7 million, or 251% above the 24-hour average.
- This confirmed strong selling pressure but, more importantly, marked the exact moment when institutional buyers absorbed liquidity on a psychological level.
- The V-shaped rebound from $2.00 towards the $2.07 to $2.08 range validates active demand at this level.
- XRP continues to form a series of higher lows on the intraday charts, signaling an early reacceleration of the trend. However, the failure to breach the $2.08-$2.11 resistance group shows a persistent supply overload as the market awaits a decisive catalyst.
- Momentum indicators show bullish divergence forming, but volume must increase during uptrends rather than just downtrends to confirm a lasting breakout.
Price Action Summary
- XRP traded between $2.00 and $2.08 over a 24-hour period, with a strong sell-off testing the psychological floor before immediate absorption.
- Three intraday advances towards $2.08 failed to breach resistance, keeping the price capped despite the improving structure.
- A consolidation near $2.06 to $2.08 through the close of the session signals stabilization above support, although compression of a wider range persists.
What Traders Should Know
- The $2.00 level remains the most important line, both technically and psychologically. Institutional accumulation below this threshold suggests that larger players are preparing for expansion phases in the medium term.
- A clear break above $2.11 is needed to trigger momentum towards the next near supply zone at $2.20 to $2.26.
- Failing to hold the $2.00 floor risks retesting the $1.95 area, where ETF-driven buying could re-emerge.
- The divergence between rising institutional demand and stagnant retail participation continues to create asymmetric bullish conditions should resistance levels be breached.
