Slides 6% as Bearish Bitcoin Sentiment Weighs Down Ripple-Linked Token

XRP rallied sharply during Tuesday’s session, breaking below key support levels on exceptional volume as bearish momentum strengthened and traders targeted the psychological $2.00 zone.

News Background

• XRP fell 6.4% to $2.20 in 24 hours, sliding from an intraday high of $2.35 amid strong institutional selling pressure. The token traded in a wide range of 12.4% as the broader crypto market stabilized, underlining the isolated weakness of XRP.
• The volume of trade rose to 356.7 million, representing a growth of 126% above the 24-hour average, confirming the institutional participation in the breaking sequence.
• Strong resistance remains at $2.37, with attempts to bounce back to $2.33 and $2.23 repeatedly rejected.
• The failure to sustain gains above previous support marked a structural shift from accumulation to active distribution.

Price Action Summary

• Price action turned sharply bearish after hitting $2.17, taking XRP to a session low of $2.08 before stabilizing around $2.20.
• Intraday data revealed a brief recovery from the $2.11 base, with the price up 4.5% to $2.209 on a short-term volume boom of 5.8 million tokens, though the rally settled to $2.216 as liquidity faded.
• The late-session bounce coincided with news that Ripple’s stablecoin RLUSD crossed $1 billion in market capitalization, but technical dynamics remain the primary driver.
• The loss of momentum above $2.22 signaled limited conviction behind the recovery, leaving XRP trapped below earlier breakout levels.

Technical analysis

• The session confirmed a decisive bearish bias as XRP formed consecutive lower lows and lower lows from the $2.37 resistance peak.
• The pattern validates a short-term trend reinforced by volume expansion during selloffs and contraction during rebounds—a classic signature of institutional distribution.
• Momentum indicators have turned negative, with the relative strength index trending close to neutrality after falling from overbought territory earlier in the month.
• Failure to recapture the $2.17 line suggests further weakness unless renewed demand emerges around the $2.08-$2.11 consolidation base.
• While XRP’s structure hints at a possible oversold recovery, the volume divergence and failed tests imply that rallies may continue to face strong resistance until broader market sentiment improves.

What traders need to know

• Traders are watching if XRP can hold above the $2.08 support to avoid accelerating losses towards the psychological $2.00 level.
• A sustained recovery above $2.22 would be needed to re-establish the bullish footing, while failure to hold current levels risks another wave of liquidation.
• Institutional volume spikes during downturns confirm active repositioning rather than retail-led volatility.
• For tactical traders, the $2.17-$2.22 area represents the key inflection range that could define the short-term direction.