XRP Drops Below Support Amid Bearish Momentum and High Volume Sell-Off
XRP extended its losses Tuesday, falling 2.71% over the past 24 hours as intensifying selling pressure broke through key technical support zones. The Ripple-affiliated token now trades at $2.20, continuing its broader downtrend within a descending channel pattern that has defined recent price action.
A sharp volume spike of 1.2 million XRP accompanied the breakdown, underscoring a surge in exit activity as sentiment deteriorated. The token’s market capitalization shrank by $6 billion, contributing to a weekly loss of over 9%, and highlighting broader headwinds facing altcoins amid global market volatility.
Fundamental Drivers and Ecosystem Developments
XRP’s price trajectory remains influenced by a combination of technical patterns and underlying project news:
- Ripple continues to pivot toward traditional finance integration, emphasizing infrastructure moves like the launch of RLUSD, a new stablecoin, and the acquisition of Hidden Road.
- The company is also engaged in regulatory collaborations, including efforts with UAE authorities to tokenize real estate assets.
- In a notable development, China-based Webus disclosed in a new SEC filing plans for a $300 million fundraise, with a significant portion earmarked for building an XRP strategic reserve.
Technical Analysis Snapshot
- XRP fell from a session high of $2.269 to a low of $2.190, with price action respecting the bounds of a descending channel.
- Resistance remains firm at $2.265–$2.270, confirmed by multiple failed breakouts on above-average volume.
- Support is forming between $2.10–$2.15, but technical indicators show momentum fading, increasing the risk of further breakdowns.
- A drop below $2.204–$2.206 at 01:48 UTC was confirmed by elevated volume (399K+), while a brief rebound to $2.208 was supported by rising volume to 446K—hinting at a possible double bottom formation.
Market Structure and Outlook
Despite the current bearish pressure, open interest has surged above $4 billion, indicating elevated liquidity and the potential for volatility-driven reversals. Some analysts suggest a short squeeze scenario could emerge if sentiment shifts abruptly, especially given the high concentration of leveraged short positions.
Still, the daily chart’s inverted V-shaped pattern points to a decisive shift in control from buyers to sellers. Until price reclaims key resistance and sustains higher volume on up moves, bears remain in charge.
