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    Tests $2.40 Support Following 6% Movement; Targets $2.65 Breakout Zone

    Ethan CarterBy No Comments7 Mins Read



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    The extensive deleveraging in derivatives markets has caused XRP to dip, but buyers are stepping in to protect the $2.40 level, establishing a crucial support retest as trading heads into the Asian session.

    News Context

    • XRP experienced a significant decline during the October 14–15 trading period, as macroeconomic pressures combined with a widespread crypto deleveraging reduced open interest by 50% to $4.22 billion.
    • In the midst of the downturn, spot trading volumes surged by 40%, indicating renewed interest from institutional investors.
    • Ripple’s recent collaboration with Immunefi—a $200,000 security audit on the XRP Ledger set for October 27 to November 24—provided a stabilizing effect on market sentiment following the early session decline.

    Price Action Overview

    • XRP decreased by 1.97%, falling from $2.54 to $2.49, traversing a volatility range of $0.16 ($2.55–$2.39).
    • Buyers consistently supported XRP within the $2.40–$2.42 range, reinforcing essential support levels after a midday sell-off.
    • Trading volume surged to 179.4 million at 13:00, nearly double the average over the past 24 hours, confirming accumulation at lower levels.
    • Sellers limited recoveries near $2.53, establishing a short-term resistance ceiling.
    • In late trading, XRP made a slight recovery to $2.50, as buying on dips helped to stabilize order books.

    Technical Review

    • The $2.40–$2.42 range is pivotal for bullish traders. Repeated rebounds indicate institutional support; however, momentum remains tenuous below the $2.53–$2.55 resistance area.
    • A sustained drop below $2.40 would open up downside targets at $2.33 and $2.25, while regaining $2.53 might reinvigorate a push towards the broader breakout point at $2.65.
    • Volume-weighted analysis suggests accumulation amidst forced liquidations, marking a traditional base-building phase if funding conditions normalize.

    Key Considerations for Traders

    • Monitoring whether the $2.40 support will hold through the start of Monday’s Asian session.
    • Identifying signs of re-leveraging following the significant decrease in open interest on derivatives platforms.
    • Volume continuity above $2.50 to confirm accumulation trends.
    • Considering macroeconomic news related to trade tensions and Federal Reserve policies as influencers of volatility.