Market participants seemed to be concentrating on liquidity conditions and reducing risk, as selling pressure increased near previously established support levels.
News background
- XRP experienced a significant decline in the latest trading session as the broader crypto markets confronted renewed risk-off sentiment.
- Even with ongoing inflows into spot ETFs in recent weeks, short-term price movements have been primarily influenced by technical setups rather than fundamental changes.
- There wasn’t a single trigger for the downturn.
- Rather, the drop was attributed to adjustments in positions across major currencies, with XRP showing relative weakness as supply surfaced during rallies.
Technical analysis
- XRP fell decisively below the $1.93 support zone, a level that had remained intact through several tests over the recent weeks. This breakdown coincided with a notable surge in trading volume, indicating engagement from larger market players rather than thin, illiquid trade.
- Total session volume reached about 191 million tokens, approximately 246% above the 24-hour average. The highest activity matched the drop below $1.93, confirming acceptance beneath that level.
- On shorter timeframes, the price action remained constrained below $1.88, which now serves as immediate resistance.
- The structure on the hourly chart indicates bearishness, characterized by lower highs and limited follow-through on minor recoveries. Momentum indicators remain compressed, suggesting that selling pressure has not completely subsided.
Price action summary
- XRP fell from just below $2.00 to a session low around $1.87.
- The $1.93 level quickly failed upon testing, with no sustained buying response.
- Price briefly consolidated between $1.86 and $1.88 after the breakdown.
- Volume stayed elevated into the close, indicating ongoing repositioning.
Volatility notably increased, with XRP trading a wide intraday range compared to recent sessions.
What traders should know
- $1.93 has shifted from a support level to resistance and remains a crucial level to monitor.
- Consistent trading below $1.88 maintains downward pressure in the short term.
- $1.85 is the next significant level where buyers may attempt to stabilize the price.
- Any recovery effort will likely need to reclaim $1.93 on declining volume to signal reduced distribution.
- Until then, XRP remains technically exposed, with price movements influenced more by market flow and position adjustments than by longer-term accumulation indicators.
