XRP broke below the $2.50 support during the session on Tuesday, falling 5% to $2.47 as institutional selling pressure accelerated on major exchanges. The breakdown confirmed a decisive shift in structure following weeks of tight consolidation, with volume and chart patterns now lining up towards a deeper corrective phase.
News background
- In the token’s 24-hour session, prices fell from $2.60 to $2.47, marking one of the biggest single-day drops this month.
- The break of the psychological level of $2.50 triggered a wave of algorithmic and institutional selling, driving trading activity to 169 million tokens, up 158% from the 24-hour average.
- The underperformance of the XRP market contrasts with broader crypto strength, suggesting a shift away from altcoins as risk appetite cools amid waning speculative participation.
- The breakout reinforced the strong overhead resistance at $2.60, where repeated rejection points in recent weeks had limited bullish momentum.
Price Action Summary
- The settlement unfolded in structured phases during trading on Tuesday. The initial breakout began at 13:00 UTC, when heavy selling volume decisively pushed the price through the $2.50 support, starting a cascade that extended to intraday lows near $2.38.
- Subsequent price stabilization formed around the $2.43 to $2.46 range, suggesting the early stages of a possible consolidation base.
- Short-term momentum readings indicated exhaustion as volume gradually decreased towards the close, a dynamic that often precedes intermediate pauses in downtrends.
- At the microstructure level, the 60-minute data showed two distinct distribution waves as XRP fell from $2,472 to $2,466.
- Successive hourly volume spikes of 2.8 million and 2.6 million tokens, each exceeding 300% of hourly averages, confirmed continued institutional control over intraday flows.
Technical analysis
- XRP’s breakout marks a continuation of its lower high-low structure that began after the failed retest of the $2.60 resistance.
- The session’s 8.8% volatility range underscores aggressive liquidation and profit-taking by larger holders, aligning with recent on-chain signals of currency inflows.
- Momentum indicators like the RSI have moved into neutral to bearish territory, while the MACD is showing an expanding bearish divergence. The $2.40 to $2.42 area now acts as immediate technical support, and a close below this band could open a further decline towards $2.30 to $2.33.
- Volume analyzes remain key: the turnover of 169 million during the breakdown confirms institutional participation rather than retail panic, while the decline in activity at the end of the session implies that most of the distribution may already be complete.
What traders should keep in mind
- Traders are closely monitoring whether the level between $2.43 and $2.46 can evolve into a stable accumulation zone or if a clear break below $2.40 accelerates capitulation.
- Reclaiming the $2.50 level would be necessary to neutralize the short-term bearish momentum and reestablish a constructive setup targeting $2.60.
- Until then, rallies towards resistance are likely to be met with supply from trapped long positions and short-term profit takers.
- Broad sentiment remains cautious amid the risk-off rotation, with derivatives positioning showing declining open interest and modest rallies in short exposure in perpetual futures markets.
