Increased institutional trading activity triggers a 38% surge in volume while XRP trails behind the broader cryptocurrency rally, indicating potential hidden selling pressure.
News Overview
- During Tuesday’s trading, XRP rose by 0.50% to $2.0925 but significantly underperformed compared to the overall crypto market, lagging by 1.77%. Despite this slight uptick, trading volume jumped by 37.94% above usual weekly levels, signaling considerable institutional engagement.
- Yet, this uptick in volume did not translate into lasting upward momentum. XRP briefly surpassed the $2.12 resistance level and reached $2.17 before quickly reversing. This movement suggests that large investors opted to sell rather than accumulate during the liquidity spike.
- The trading session reflected broader rotation dynamics: major cryptocurrencies such as BTC and SOL attracted capital inflows, while XRP’s order books indicated a more aggressive deployment of selling liquidity, consistent with distribution trends during rallies.
Technical Overview
- XRP’s inability to maintain levels above $2.12 has solidified this price point as strong resistance.
- A breakout quickly followed by a rejection typically indicates distribution, especially when accompanied by substantial volume—189.7 million tokens exchanged during the attempt, significantly surpassing typical trends.
- The current structure indicates short-term compression between $2.083 and $2.17, creating a broad equilibrium area where liquidity is being shuffled between buyers and sellers.
- While the higher lows from $2.083 offer some stabilization, the failure to sustain momentum above $2.12 keeps the outlook neutral to bearish.
- Momentum indicators show slight bullish divergence from the $2.083 low, although this is counterbalanced by decreasing volume on recoveries and the overhead supply established by the failed breakout.
- Until XRP shows conviction through $2.17—with volume backing—the technical setup remains range-bound, with hidden selling pressure.
Price Movement Summary
- Initially, XRP showed mild strength but quickly dropped to $2.083 before stabilizing. A two-step recovery pushed the token near $2.17, but immediate strong selling emerged at that level.
- Volume surged to 184% above the 24-hour SMA during this push, underlining institutional involvement in the reversal.
- Subsequently, XRP settled lower within the $2.09–$2.10 range, consolidating towards the close. The $2.09 level provided psychological and technical support, managing flows but failing to generate meaningful upward movement.
- The session ultimately reflected controlled distribution: strong volumes on price advances, weak continuation afterward, and consistent seller presence above $2.12.
Key Insights for Traders
- XRP’s ability to maintain the $2.09 level will influence short-term direction. A break below this level reveals $2.05 and $2.00 as subsequent support zones.
- For an upward recovery, a clear reclaim of $2.12 and ultimately $2.17 is necessary—levels where significant selling pressure appeared. Without strong volume confirmation, moves into these areas could face further distribution risks.
- Institutions seem active but are not accumulating. Their involvement appears more aligned with liquidity harvesting during volatility peaks rather than increasing directional exposure.
- If overall crypto strength continues, XRP may lag until overhead supply is cleared. Watch for narrowing ranges and declining volume as early indicators of accumulation shifting back in favor of buyers.
