Ripple Falls 6%, Watch This Price Level For Further Breakdown

XRP traded in a range on Monday, gaining 2.75% to $2.34 as it underperformed the broader crypto market amid subdued participation. The move reflected cautious accumulation rather than broad conviction, as trading volumes remained below trend despite multiple volatility spikes during the session.

News Background

• XRP climbed 2.75% to $2.34 in the 24-hour period, but lagged the CD5 index by about 2.5%, highlighting the divergent performance of the sector.
• Volume fell 6% below the seven-day average, with 24-hour turnover signaling only light institutional engagement.
• The session opened strongly before encountering strong reversals. Prices fell from $2.51 to $2.35 before staging a late recovery to $2.34.
• The intraday sharp breakout triggered 420.8 million in volume – about 400% above the average – confirming the firm resistance at $2.44 and defining $2.33 as the emerging support base.
• The last hour saw a modest increase of 1.4% to $2,353 as traders repositioned in the end.

Price Action Summary

• The market structure showed range compression as XRP oscillated in a $0.20 corridor, reflecting tighter volatility ahead of a potential breakout.
• The institutional rotation remained selective, with capital flows favoring Bitcoin and Solana, while the relative strength index of XRP remained in neutral territory.
• The launch of Ripple Prime in the US and persistent ETF speculation provided macro support, but the price action continued to follow the descending triangle pattern that dominated the highs.
• Long-term holders of the token increased daily spending by 580% to $260M, signaling ongoing profit-making despite steady inflows.

Technical analysis

• XRP is trading in a limited consolidation range from $2.30-$2.35 support and $2.60-$2.72 resistance.
• The $2.54 pivot zone remains decisive for the directional bias. The descending triangle pattern connecting the lower highs from the $3.15 peak continues to suppress breakout momentum, while the compression of the EMA tape suggests an impending volatility event.
• Volume analysis shows declining participation during rebounds after high volume sales – a classic bearish divergence setup.
• Unless XRP can support trading above $2.54, the technical momentum favors continued consolidation with a potential downside towards $2.25-$2.02.

What traders need to know

• Traders are looking at the $2.54 resistance zone as the technical inflection point for breakout confirmation.
• Sustained closes above this level could cap the momentum, targeting $2.80-$3.00. On the contrary, failure to hold the $2.30 support risks renewed downside towards the $2.20 range.
• Despite the subdued participation, XRP’s compression setup offers asymmetric risk for directional traders looking for pre-breakout positioning.
• Market volatility remains high, with implied options spreads widening for contracts expiring in November – a sign that the market is expecting a decisive move within days.