XRP fell below the $2.50 mark during the session on Tuesday, falling 1.2% to $2.49, as repeated rejections at $2.55 confirmed strong resistance. The drop occurred due to intense institutional activity, with volume rising 85% above the recent average as sellers consolidated control at the upper end of XRP’s trading range.
News background
- The digital asset traded between $2.49 and $2.55 during the 24-hour session, with the price action dominated by technical flows rather than fundamental drivers.
- Three failed breakout attempts between $2.54 and $2.55 set the tone of the session, each accompanied by high selling volume.
- Overall activity increased 85% above the 7-day average as total turnover reached 50.3 million tokens during the dip, confirming institutional-scale distribution at resistance levels.
- Market sentiment remains mixed after recent gains, with traders watching to see if XRP can hold support above $2.49 amid broader consolidation in high-beta crypto assets.
Price Action Summary
- In the 24-hour session of XRP, the price fluctuated within a range of $0.07, stabilizing near $2.497 after falling to intraday lows of $2.49. The 60-minute chart revealed brief attempts to recover $2.50.
- This behavior suggests an institutional reaccumulation around the $2.50 mark, a level historically associated with short-term liquidity traps. Despite the pullback, buyers have defended the psychological floor through multiple tests.
- However, market microstructure analysis shows a shift in momentum as sell orders cluster above $2.54, limiting near-term upside until volume profiles re-align with previous bullish patterns.
Technical analysis
- Repeated session rejections at $2.55 confirmed a developing lower high formation on daily charts, indicating fading momentum following the October rally.
- Support at $2.50 continues to act as a key psychological and structural pivot; maintaining closes above this threshold remains essential to preserve the medium-term bullish bias.
- Momentum indicators including the RSI and MACD are hovering near neutral territory, suggesting a possible pause phase rather than a full reversal.
- The concentration of volume at the upper resistance levels (particularly the peak of 50.3 million during the sell-off) confirms active profit-taking by large holders.
- Declining volume in the subsequent consolidation implies early signs of accumulation, with institutional buyers potentially placing bids near the $2.49 to $2.50 zone.
What traders should keep in mind
- XRP’s near-term trajectory depends on whether the $2.49 support can withstand further testing.
- Sustained closes below this level could open lower towards $2.46, while a clean break above $2.55 would restore short-term sentiment and target the $2.60 extension.
- Traders are watching for confirmation through volume alignment: expansion with bullish moves would validate renewed demand, while continued decline in activity would reinforce a range-bound outlook.
- Until directional confirmation emerges, positioning remains tactical, with pockets of liquidity in $2.49–$2.50 offering short-term opportunities for both mean reversion and breakout traders.
