XRP faced intense selling pressure at key support levels before a dramatic high-volume V-shaped reversal signaled the possible exhaustion of bearish momentum.
News background
The decline unfolded against a backdrop of contradictory institutional signals and heightened macroeconomic uncertainty. Crypto markets remain stuck in a medium-term bearish trend, with sentiment anchored in fear zone as volatility increases in major currencies.
Canary Capital’s newly launched US spot XRP ETF (XRPC) recorded first-day volume of $58.6 million, far exceeding analyst expectations of $17 million. However, the strong debut failed to stabilize XRP as derivatives markets issued signs of stress. Approximately $28 million in XRP liquidations occurred in 24 hours, with long positions accounting for nearly $25 million of the liquidation.
Market analysts warn that institutional flows remain conflicted: ETF inflows show interest, but broader risk-off pressure continues to suppress cryptocurrency liquidity and momentum.
Price Action Summary
XRP fell 4.3% from $2.31 to $2.22 during the 24-hour session ending November 16 at 02:00 UTC. The drop created a range of $0.10 with a clear sequence of lower highs confirming the bearish structure.
The most aggressive selling occurred at 00:00 UTC, when 74M XRP traded, 69% above the 24-hour average, breaking the $2.24 support. The price fell to $2.22, marking the session’s low. Three separate volume spikes above 57 million during the decline phases validated a sustained distribution.
Despite the ETF catalyst, the sell-off accelerated as the price rejected $2.31 and failed to find support near previous consolidation zones. The pair settled into a tight consolidation of $2.22-$2.23 after the breakout.
Technical analysis
Support/Resistance:
- Primary support: $2.22 (capitulation low)
- Immediate resistance: breakout zone between USD 2.23 and USD 2.24
- Fibonacci critical support: $2.16 (0.382 retracement); loss of this level risks a rapid fall towards $2.02-$1.88
Volume profile:
- Breakout volume: 74 million XRP (+69%) confirming capitulation
- Two peaks in the reversal phase (01:39, 01:46): 4.7 million each, indicating sales exhaustion
- The recovery registered a normalized but constant volume, in line with the interest of bottom fishing
Chart structure:
- The price overnight turned into support, printing a textbook V-shaped reversal.
- Higher lows formed at $2,209 → $2,217 → $2,227, indicating a change in momentum
- However, the broader downtrend from $2.31 remains intact pending resistance recovery.
- Do not exceed the limits of the zone of 2.23 to 2.24 dollars, bullish follow-up
Momentum Indicators:
- Intraday oversold conditions caused a reversal, but daily trend bias remains bearish
- 50D/200D structure tilts downward, adding superior pressure
What traders need to know
XRP finds itself in a tactical pivot after a dramatic failure:
- Holding $2.22 is crucial: failure exposes a direct move towards $2.16, then between $2.02 and $1.88.
- A confirmed recovery to $2.24, followed by $2.31, is needed to rebuild the bullish structure.
- ETF Flows Will Influence Volatility – Follow XRPC Initial Volume at US Market Open
- The V-shaped bounce provides short-term relief, but significant overhead resistance limits immediate upside.
- A sustained break above $2.48 is required to change the trend bias towards targets of $2.60 or higher.
