XRP Drops 3% as Selling Pressure Overwhelms Support Level
XRP XRP tumbled 2.71% over the past 24 hours, continuing its downward spiral as selling pressure outweighed buyer interest.
The token now trades at $2.20 after breaking below key support levels, forming a descending channel pattern that has defined recent price action. A significant volume spike of 1.2 million units preceded the breakdown, signaling traders’ rush to exit positions as market sentiment soured.
XRP’s market cap shed $6 billion during the session, with weekly losses totaling 9.11%, reflecting a broader struggle to maintain momentum amid global market volatility.
News Background
- Ripple’s XRP continues to be shaped by a mix of fundamental developments and technical factors.
- Ripple recently emphasized its strategy to integrate with traditional finance rather than replace it entirely, highlighting projects like RLUSD (Ripple’s new stablecoin) and its acquisition of Hidden Road as infrastructure plays that could strengthen XRP’s role in cross-border payments.
- Meanwhile, Ripple’s ongoing work with UAE regulators on tokenized real estate demonstrates its commitment to global expansion.
- On Wednesday, China-based Webus filed with the SEC detailing plans of a $300 million fundraise with a major portion dedicated to establishing an XRP strategic reserve.
Price-Action
CoinDesk Research’s technical analysis model shows strong resistance at the $2.265-$2.270 zone, with multiple failed breakout attempts and above-average volume confirming sellers’ dominance.
Support has emerged in the $2.10-$2.15 range, but weakening momentum suggests this level could be tested further if selling persists.
Despite the bearish backdrop, some analysts point to potential bullish signals. A possible double bottom pattern formed as price rebounded to $2.208 on increasing volume, indicating that short-term accumulation may be underway.
Open interest has surged past $4 billion, hinting at heightened market liquidity and the potential for a short squeeze if sentiment shifts. However, caution remains warranted as the inverted V-shaped pattern on XRP’s daily chart underscores the recent shift from buying enthusiasm to aggressive selling pressure.
Technical Analysis Recap
- XRP fell 2.71% from a high of $2.269 to a low of $2.190 over the past 24 hours.
- Price action formed a descending channel, reflecting persistent bearish momentum.
- Resistance at $2.265-$2.270 confirmed by multiple rejections on above-average volume.
- Support established at $2.202-$2.205, but momentum suggests vulnerability at this level.
- A breakdown below $2.204-$2.206 at 01:48 was accompanied by increased volume (399K+).
- A potential double bottom formed as price rebounded to $2.208 with volume increasing to 446K.
Disclaimer: Portions of this article were generated with the assistance of AI tools and reviewed by CoinDesk’s editorial team for accuracy and adherence to our standards. For more information, see CoinDesk’s full AI Policy.