Ripple token breaks the critical floor of $2.07 amid increased volume, indicating a deeper correction ahead.
News background
- XRP continues to face conflicting forces as near-term technical weakness collides with strengthening institutional adoption.
- XRP spot ETFs have attracted nearly $850 million in inflows since their launch in mid-November (one of the strongest altcoin ETFs on record), suggesting long-term capital continues to accumulate exposure.
- Despite this, overall market liquidity remains tight and leverage metrics on major exchanges show declining 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 sensitive to technical failures even as fundamental demand rises in the background.
Technical analysis
- XRP spent most of the session trying to stabilize above the $2.07 support zone, but the tape revealed a consistent pattern of lower highs, a classic sign that buyers were losing control of the momentum.
- Volume expanded with each rejection near $2.11 – $2.13, reinforcing the seller’s dominance at the overhead resistance.
- The decisive technical change occurred in the last hour of the session: the floor of $2.07 gave way as volume increased dramatically. A burst of secondary volume at 03:24 GMT pushed XRP briefly towards the $2.00 level, confirming that the initial breakout was not a false move but the beginning of a continuation leg lower.
- Momentum indicators are now leaning firmly to the downside, with the RSI trending lower from mid-levels and the MACD moving deeper into negative territory. The breakout transforms previous support at $2.07 into immediate resistance, a key pivot level that must be recovered to restore the 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 that generated nearly 6% volatility. Attempts to recover $2.11 failed due to weakening volume before the breakout intensified.
- At 19:00 UTC, volume spiked to 94.0 million (68% above normal), marking the rejection at $2.13 and confirming the shift toward bearish continuation.
- Subsequent declines saw XRP test levels near $2.09 and briefly flirt with the $2.00 level as volume surged back above 1 million in a single minute.
- The price is now consolidating in the $2.10 to $2.12 zone, but remains below all intraday resistance levels, leaving downward pressure intact.
What traders should know
- XRP is now trading at a critical time. The failure of $2.07 (a level that was the subject of multiple tests earlier in the week) opens a clear technical path towards $2.05 and, if that level is broken, towards the deeper demand region of $1.90 to $1.97 highlighted by several analysts.
- Despite strong ETF inflows, institutional spot purchases did not offset near-term technical deterioration. Until the price recovers between $2.07 and $2.11 with conviction and increasing volume, the structure favors continued decline.
- A clear rebound from $2.05, along with a recovery to $2.11, would be the first sign that buyers are regaining momentum. A failure would expose the November lows and extend the bearish cycle into December.
