The rotation between assets generates new capital inflows into risk assets as XRP outperforms major altcoins, reclaiming the $2.50 level before profit-taking begins.
News background
- XRP posted a 3% intraday gain on Monday as traders dumped defensive assets amid gold’s pullback and a modest bitcoin rally. The move came as broader markets digested easing geopolitical tensions and lighter US inflation data, creating short-term risk appetite across digital assets.
- Institutional desks reported renewed positioning in XRP ahead of pending SEC ETF decisions, while Ripple’s ongoing $1 billion capital raise continued to support sentiment among professional traders seeking exposure to regulated pegged tokens.
Price Action Summary
- The token rose from $2.47 to a session high of $2.56 during the 19:00 UTC breakout, marking a 3% advance on volume of 141 million, roughly 150% above its 24-hour average. Buying momentum faded near the $2.56 resistance, prompting a measured pullback towards the $2.42 to $2.45 area, where demand re-emerged.
- In the last hour prices stabilized near $2.44 after a quick 1% rebound from lows of $2.42 as market makers absorbed the final selling of the session. Total intraday volatility reached 6.4% in a range of $0.16, underscoring active institutional flow throughout the session.
Technical analysis
- XRP remains limited but constructive. The $2.42 to $2.44 support band has undergone multiple tests, while the $2.54 to $2.56 area continues to limit bullish momentum.
- Volume spikes during breakout attempts indicate persistent institutional commitment, although the sequence of lower highs suggests near-term consolidation.
- A decisive close above $2.56 would next expose $2.65; conversely, a drop below $2.42 could extend losses to $2.35. RSI levels have moderated from overbought readings, leaving room for another push higher if volume returns.
What traders are watching
• Correlations between assets: Continued weakness in gold or strength in bitcoin could maintain XRP support.
• Confirmation of ETF deadlines by the SEC as a catalyst for volatility.
• Price stability above $2.42 support; A failure here risks losing momentum.
• A retest of $2.56 breakout that could open targets towards $2.65-2.70.
