Ripple’s token surpasses the critical $2.07 low amid increasing volume, signaling a deeper correction to come.
News context
- XRP continues to face conflicting strengths as near-term technical weaknesses collide with strengthening institutional adoption.
- The Spot
- Despite this, broader market liquidity remains low and leverage indicators on major exchanges show a decline in open interest, indicating a risk-averse environment and reduced speculative participation.
- Combined with Bitcoin’s continued volatility below key weekly levels, altcoins like XRP remain highly susceptible to technical breakdowns, even as fundamental demand builds in the background.
Technical analysis
- XRP spent most of the session attempting to stabilize above the $2.07 support zone, but the band revealed a consistent pattern of lower highs – a classic sign that buyers were losing control of momentum.
- Volume increased with each rejection from near $2.11 to $2.13, solidifying the seller’s dominance over overhead resistance.
- The decisive technical change occurred in the final hour of the session: the $2.07 floor gave way as volume increased significantly. A burst of secondary volume at 03:24 GMT pushed XRP briefly towards the $2.00 level, confirming that the initial breakdown was not a false move but the start of a continued decline.
- Momentum indicators are now clearly bearish, with the RSI trending lower from mid-levels and the MACD moving deeper into negative territory. The break turns former support at $2.07 into immediate resistance – a key pivot level that must be reclaimed to restore near-term bullish structure.
Price Action Summary
- XRP fell sharply from $2.20 to $2.10, losing 5.7% in a 24-hour range of $0.13, which generated volatility of almost 6%. Attempts to reclaim $2.11 failed due to weakening volume before the breakdown intensified.
- At 19:00 UTC, volume reached 94.0 million – 68% above normal – marking the rejection at $2.13 and confirming the move towards a bearish continuation.
- Subsequent declines saw XRP test levels near $2.09 and briefly flirt with the $2.00 handle as volume topped 1 million again in a single minute.
- The price is now consolidating in the $2.10-$2.12 area, but remains below all intraday resistance levels, leaving the downward pressure intact.
What Traders Should Know
- XRP is now trading at a critical juncture. The failure of $2.07 – a level that saw several retests earlier in the week – opens a clear technical path to $2.05 and, if that breaks, the deeper $1.90-$1.97 demand region highlighted by several analysts.
- Despite significant ETF inflows, institutional spot purchases have not offset the short-term technical deterioration. Until price recovers to between $2.07 and $2.11 with increasing conviction and volume, the structure favors a continued decline.
- A sharp rebound from $2.05, coupled with a recovery to $2.11, would be the first sign that buyers are regaining momentum. Failure would expose the November lows and extend the bear cycle into December.
