XRP is trading narrowly after a volatile stretch, holding above near-term support as market participants weigh fresh risk exposure. Strategists warn that a deeper pullback towards $1.55 remains plausible before a structural recovery attempt towards the $7-$27 corridor.
News background
- The token stabilized during Thursday’s Asia-US trade, consolidating between $2.34 and $2.39 after a strong rally earlier in the week.
- The midday surge to $2.39 on October 18 attracted 42.23 million in volume (nearly double the 24-hour average) before fading into a narrow band near $2.35.
- Market sentiment remains cautious amid $19 billion worth of cross-cryptocurrency liquidations sparked by escalating trade tensions.
- Ripple’s proposed $1 billion capital raise and the SEC’s ongoing review of six XRP spot ETF filings continue to shape positioning. Institutional desks report lower leverage exposure and a rotation toward cash collateral as traders prepare for policy headlines and macroeconomic catalysts.
Price Action Summary
- XRP moved in a tight 2% range during the October 18-19 session, reaching a floor near $2.34. The bulls briefly retested the $2.39 ceiling before sellers reloaded.
- The volume decreased during the last half of the day – a classic pre-break compression.
- In the last hour (07:10–08:09 UTC) XRP recovered from $2.34 to $2.35 with a turnover of $590,000, suggesting that the previous fade may have been a false breakout rather than a clear trend change.
Technical analysis
- The price structure remains neutral to bullish while XRP is trading above the $2.34 support. Intraday action shows a pocket of accumulation forming within the $2.34 to $2.35 band, with clear resistance anchored near $2.39.
- Momentum models show decreasing volatility and a reset of the RSI after a previous overextension.
- A decisive break above $2.39 reopens the price at $2.47, while failure to hold the $2.34 level exposes the group between $2.28 and $2.31. Long-term technicians point to a possible 40% correction towards $1.55 if risk-off sentiment intensifies, a move that could set the stage for the next cyclical advance.
What traders are watching
- Desks are watching ETF holders through October 25 as potential volatility unfolds. A recovery to $2.40 with volume confirmation could trigger the next wave towards $2.65.
- Macro traders remain cautious about developments in US-China tariffs and the Fed’s language around liquidity, both seen as catalysts for the next momentum move.
