XRP experiences notable gains but is still lagging behind the overall surge in digital assets, with below-average trading volume raising concerns about the sustainability of this increase as Bitcoin surged past $94,000, leading to significant market adjustments.
News Background
- Bitcoin’s abrupt rise above $94,000 triggered a widespread rebound in major cryptocurrencies, with nearly all large-cap tokens showing immediate volatility to the upside.
- This surge led to the liquidation of numerous bearish positions in the derivatives market: 107,333 traders were liquidated within 24 hours, resulting in $387.5M in forced exits, including a single $23.98M liquidation of BTC long position on HTX.
- Despite the energized macro backdrop, XRP’s response was subdued compared to its peers. The token underperformed the CD5 index by 1.55%, indicating a possible rotation away from XRP during this risk-on rally.
- Institutional trading volumes did not significantly pick up either, as the 24-hour volume was 5.88% below its 7-day average, notwithstanding the positive price trends.
- This divergence—strong macro rally with weak relative performance—creates a more complex technical outlook for the upcoming sessions.
Technical Analysis
- XRP shows a positive intraday structure with higher highs and higher lows, yet the underlying momentum appears inconsistent compared to other major cryptocurrencies.
- Support remains at $2.05, where it has convincingly held during multiple intraday tests. The ascent towards $2.17 set a new local resistance level; however, the lack of sustained volume growth restricts confirmation.
- Momentum indicators on shorter timeframes reveal diminishing follow-through post-breakout attempt: the surge at 15:00 faced significant volume rejection at resistance, followed by a gradual retreat into the $2.15–$2.16 range.
- This behavior indicates profit-taking rather than a trend reversal but also signifies that bulls lack full control until wider participation occurs.
- With Bitcoin pulling other majors upward, XRP’s relative underperformance can be seen as a technical indicator—often a precursor to either a delayed increase in price or deeper consolidation if the macro momentum wanes.
Price Action Summary
- XRP climbed from $2.08 to $2.15, achieving a 4.71% increase within a $0.09 (4.3%) trading range.
- The breakout towards $2.17 was accompanied by a strong volume surge of 128.7M tokens, 147% above the rolling 24-hour average, but post-rally participation swiftly declined, indicating short-term hesitance among larger traders.
- Underperformance against the broader market reflects a capital rotation into higher-beta assets during Bitcoin-led rallies, leaving XRP rising more gradually without the explosive momentum seen in its peers.
What Traders Should Know
- XRP is positioned between a favorable local structure and weak relative strength. The recovery remains intact as long as $2.05 holds; however, bulls need to reclaim and close above $2.17 with increasing volume to confirm alignment with broader market trends.
- If Bitcoin maintains levels above $94K, XRP has historically lagged before escalating in delayed catch-up phases—making the next 24–48 hours crucial for confirmation.
- Keep an eye out for:
• increases in volume on any break above $2.17
• failure to boost participation, which might confine price within a $2.05–$2.17 consolidation range
• broader market liquidation patterns that may redirect capital back into lagging majors like XRP - If $2.05 fails, significant support is noted at $1.98–$2.00, where recent ETF-related demand has bolstered a stabilizing bid.
