XRP plunged sharply on Wednesday as sellers breached key support zones, triggering widespread sell-offs across exchanges, while institutional flows fueled the most trading activity in more than a week.
News background
XRP fell 7.5% in 24 hours, going from $2.40 to $2.22 in a widespread sell-off that accelerated after the token broke technical support at $2.28. The breakdown developed alongside an increase in trading volume that reached 137.4 million, representing an 84% increase above the daily average.
The selloff peaked at 15:00 GMT, as cascading stop orders amplified the downward pressure, forcing XRP to break through multiple short-term support levels. The decline spanned a range of $0.21, underscoring increased volatility as traders unwound leveraged positions.
At the end of the session, trading activity fell sharply to 7.0 million as sales momentum cooled. The sharp contraction in volume reflected exhaustion among short-term participants following one of the steepest intraday declines this month.
Price Action Summary
The price briefly stabilized near $2.20 before rebounding modestly to $2.224, forming a series of higher lows until 02:12 GMT when short-term buyers entered oversold levels. The move reflected tactical accumulation rather than directional conviction, as the broader structure remained bearish.
Despite the bounce, XRP failed to reclaim the breakout level of $2.28, confirming the shift in market control to sellers. Consolidation around $2,218 dominated the final hours of trading, highlighting indecision amid depleted liquidity. The pattern reflects previous crisis phases in which low-volume stabilization precedes short-lived recoveries or further declines.
Technical analysis
XRP’s daily structure now confirms a firm bearish bias following multiple failed tests of the $2.40 resistance zone. The decisive break below $2.28 marked the completion of a descending channel formation visible on the 4-hour charts, a pattern typically associated with continuation setups in corrective markets.
Momentum indicators turned sharply negative as the RSI retreated from neutral levels to slightly oversold territory, while MACD readings aligned lower for the first time in two weeks. These signals support the short-term continuation thesis unless XRP reclaims the $2.28-2.30 pivot range.
Volume analyzes strengthen the bearish view, with the 84% increase during the crisis contrasting sharply with the decline in participation during the rally, a classic feature of institutional distribution rather than retail-driven volatility.
What traders should know
Traders are focused on whether the $2.20 level can hold as interim support amid continued selling pressure. A decisive break below this level would expose between $2.10 and $2.00, where previous consolidation zones provide limited technical cushion.
On the contrary, recovery efforts require a firm close above $2.28 to neutralize the current downtrend and open a path towards resistance at $2.35 to $2.40. Short-term market sentiment remains fragile as derivatives data shows rising short-term exposure and reduced spot demand.
