The Ripple-pegged token broke through multiple technical floors, while whale transfers injected new uncertainty into an already fragile market structure.
News background
- XRP plunged 5.1% to $2.41 during the session on Tuesday, falling from $2.54 as selling pressure surpassed key support zones.
- The move developed without direct macroeconomic catalysts, but rather reflected a technical-driven sell-off amplified by volume expansion and large-scale token movements across major wallets.
- Tennessee-based Canary on Monday filed a Form 8-A, a U.S. Securities and Exchange requirement for companies that register securities.
- The Canary XRP ETF would track the spot price of the fourth-largest digital asset by market cap.
- Whale activity exacerbated volatility, with more than $1 billion worth of XRP moved between escrow addresses linked to Ripple.
- While on-chain data suggested the transfers were internal and unrelated to the exchange, the timing created new uncertainty during a period of heightened technical fragility.
Price Action Summary
- The decline stabilized between $2.39 and $2.41 as short-term buyers stepped in to absorb the selling pressure. The token recovered modestly from lows of $2,408 and rose to $2,418 during the overnight session.
- Hourly data showed a 4.5% bounce from session lows, with volume exceeding 1.1 million at 02:01 UTC, suggesting opportunistic accumulation at discounted levels.
- Despite the brief recovery, XRP remains technically limited. The consecutive lower highs from the $2.54 high reflect persistent distribution patterns. Failing to recapture $2.47 or recapture broken support at $2.43 leaves the broader setup vulnerable to further tests to the downside.
Technical analysis
- The broader structure is tilted lower as momentum indicators point to deterioration in the medium-term periods.
- The developing Death Cross pattern, where the 50-day moving average converges below the 200-day, adds to near-term caution.
- RSI readings hover around oversold territory, suggesting possible short-term relief, but confirmation of the trend requires stronger participation from institutional buyers.
- The 38.2% Fibonacci retracement near $2.42 defines immediate resistance, while any recovery above $2.47 could restore equilibrium in the short term. However, below $2.35, the risk of a prolonged decline towards the $2.20-2.25 area increases considerably.
What traders should know
- XRP’s ability to defend the $2.39 to $2.41 band will determine whether the move evolves into a technical bounce or extends into deeper correction territory.
- The lack of panic volume on the final leg down suggests controlled profit-taking rather than capitulation, although whale activity remains a wild card for sentiment.
- Institutional traders continue to monitor Ripple-related on-chain flows as potential leading indicators of liquidity-driven changes.
- With broader crypto sentiment mixed, the next decisive move depends on whether XRP can reclaim $2.47, its near-term pivot point separating stabilization from sustained decline.
