XRP has decreased to $1.85 after breaching the $1.87 support level, with increased exchange inflows indicating a renewed distribution. This comes as Bitcoin’s recovery stalls and overall risk sentiment remains cautious.
News Background
While institutional interest in XRP remains solid via ETFs, short-term flow dynamics indicate a different trend. On-chain analytics reveal a significant rise in XRP deposits to major exchanges recently, implying that holders are more inclined to sell during rallies rather than accumulate.
Daily exchange inflows have fluctuated between roughly 35 million and 116 million XRP since mid-December, marking a significant change from previous periods of relative stability. This trend typically indicates profit-taking or repositioning strategies rather than speculative accumulation.
This shift comes as Bitcoin struggles to maintain its upward momentum during U.S. trading hours, keeping larger cryptocurrencies in a risk-managed environment. With Ether also unable to sustain its momentum, secondary cryptocurrencies like XRP have faced increased supply-driven fluctuations.
Technical Analysis
XRP dropped from $1.89 to $1.85, decisively breaking the $1.87 support zone that had held during recent consolidations. The selling intensified during peak activity periods, with trading volume reaching about 68 million XRP—approximately 77% higher than the 24-hour average—indicating that the movement was not merely a result of low liquidity.
On shorter timeframes, price action formed a tentative double bottom around $1.846–$1.848, but rebounds have repeatedly faltered near the $1.85 mark, turning this level into near-term resistance instead of support. The overall structure continues to display a descending channel, and failed attempts to bounce back suggest ongoing selling pressure.
Momentum indicators are beginning to indicate oversold conditions, yet the price has still not reclaimed any significant resistance levels. Until this occurs, the technical outlook remains defensive rather than conducive to reversals.
Price Action Summary
- XRP dropped from $1.89 to $1.85 within 24 hours, breaching the $1.87 support level.
- Selling activity peaked during the breakdown, with volume approximately 77% above average.
- Price momentarily stabilized near $1.846 but struggled to recover to $1.85 effectively.
- Rebounds have been capped, reinforcing a structure of lower highs.
What Traders Should Know
This scenario depicts a classic supply-versus-support dynamic.
Exchange inflows indicate that more XRP is becoming available for sale, which clarifies why rallies continue to stall even amidst persistent long-term ETF demand.
The levels to watch are clear:
- If $1.85 fails, downside pressure may lead to $1.84 and then toward the $1.77–$1.80 demand area, where buyers have previously intervened.
- If XRP manages to reclaim $1.87, and particularly closes above $1.90, it would signify easing selling pressures and refocus attention on the $1.95–$2.00 targets.
Currently, the market appears to be consolidating with distribution overhead. While ETF flows could mitigate sharp declines, without renewed momentum in Bitcoin, XRP is likely to be vulnerable to additional support tests rather than initiating a clear recovery.
