Strong selling pressure sends XRP down 2% before it stabilizes near key support. Institutional positioning and new open interest suggest accumulation at current levels.
News background
- XRP extended its decline during the October 16-17 session, falling 2% from $2.41 to $2.36 amid the ongoing institutional sell-off. Market data shows over 150 million in daily volume as long-term holders trimmed their positions by 34% over the past two weeks.
- Hodler’s net position change metric fell from 163.7 million to 107.8 million tokens, a clear sign of divestment rotation following the increase in volatility in the middle of the month.
- Despite the drop, open interest recovered to $1.36 billion as derivatives traders began rebuilding exposure after the weekend bust.
- Market desks say the renewed activity could usher in tactical long positioning on end-of-quarter ETF speculation and signs of macroeconomic easing.
Price Action Summary
- XRP traded between $2.31 and $2.47 over the 24-hour period, a band of $0.16 representing 7% intraday volatility.
- Selling intensified between 2pm and 8pm as the price fell 8% intraday, from $2.44 to $2.29, before recovering modestly through the US close.
- High volume reversals above $2.31 confirmed strong spot demand and algorithmic buying into weakness.
- Resistance remains capped near $2.47, where repeated rejection wicks indicate continued supply pressure.
- The last hour (04:34–05:33) showed a consolidation of $2.35–$2.36 with volume spikes of 1.6 million, typical of controlled reaccumulation phases after forced unwinds.
Technical analysis
- XRP’s price structure is stabilizing within the $2.31 to $2.47 channel, with the $2.35 pivot acting as a short-term anchor. Volume clusters around this zone indicate institutional accumulation despite the broader tone of risk aversion.
- A clean recovery to $2.47 would invalidate the short-term bearish setup and open a path towards $2.55.
- Momentum indicators remain between neutral and oversold, while funding rates turned slightly positive, a sign that short covering has slowed. Analysts expect consolidation to remain choppy until macroeconomic risk recedes or ETF-related flows accelerate.
What traders are watching
- $2.31 to $2.35 Support Zone: Base defense levels indicating buyer absorption.
- Recovery of $2.47 resistance: first confirmation trigger of reversal momentum.
- Open interest and normalization of financing: Evidence for re-leveraging after the surge.
- ETF timeline and Fed comments as catalysts for Q4 cryptocurrency flow rotation.
