XRP plunged sharply during the session on Tuesday, breaking below key support levels on exceptional volume as bearish momentum strengthened and traders targeted the psychological $2.00 zone.
News background
- XRP fell 6.4% to $2.20 in 24 hours, sliding from an intraday high of $2.35 amid strong institutional selling pressure. The token traded in a wide range of 12.4% as the broader crypto market stabilized, underscoring XRP’s isolated weakness.
- Trading volume skyrocketed to 356.7 million, representing a 126% increase above the 24-hour average, confirming institutional involvement in the breakout sequence.
- Strong resistance persisted at $2.37, with rebound attempts to $2.33 and $2.23 repeatedly rejected.
- The failure to maintain gains above the previous support level marked a structural shift from accumulation to active distribution.
Price Action Summary
- Price action turned sharply bearish after the drop to $2.17, taking XRP to a session low of $2.08 before stabilizing around $2.20.
- Intraday data revealed a brief recovery from the base of $2.11, with the price rising 4.5% to $2,209 on a short-term volume surge of 5.8 million tokens, although the rally stalled at $2,216 as liquidity faded.
- The late-session bounce coincided with news that Ripple’s RLUSD stablecoin surpassed $1 billion in market capitalization, but technical momentum remained the main driver.
- The loss of momentum above $2.22 indicated limited conviction behind the recovery, leaving XRP trapped below previous breakout levels.
Technical analysis
- The session confirmed a decisive bearish bias as XRP formed consecutive lower highs and lower lows from the resistance peak of $2.37.
- The pattern validates a short-term downtrend reinforced by volume expansion during sell-offs and contraction during bounces, a classic signature of institutional distribution.
- Momentum indicators turned negative, and the Relative Strength Index trended near neutrality after falling from overbought territory earlier in the month.
- Failure to reclaim the $2.17 line suggests further weakness unless renewed demand emerges around the consolidation base of $2.08-2.11.
- While XRP’s structure hints at a possible oversold recovery, volume divergence and failed retests imply that rallies may continue to face stiff resistance until overall market sentiment improves.
What traders need to know
- Traders are watching whether XRP can hold above the $2.08 support to avoid accelerating losses towards the psychological $2.00 level.
- A sustained recovery above $2.22 would be needed to reestablish a bullish base, while failure to hold current levels risks another sell-off.
- Institutional volume spikes during dips confirm active repositioning rather than retail-driven volatility.
- For tactical traders, the $2.17 to $2.22 zone represents the key inflection range that could define the near-term direction.
