XRP tumbled nearly 4% on Tuesday, retreating from the $2.99 resistance zone to stabilize around $2.878 amid a surge in institutional selling. Trading volumes spiked to nearly seven times the daily average, reflecting over $500 million in liquidations. Market watchers are now focused on whether the $2.85–$2.87 support band can hold as Ripple’s U.S. banking charter review looms.
Market Context
Ripple’s push for a national banking charter has drawn regulatory attention, with the Oct. 7 OCC review deadline marking a key milestone. Broader macro factors, including trade tensions and divergent central bank policies, continue to weigh on liquidity, particularly for enterprise-focused tokens like XRP.
On-chain data reveals Binance custody reserves climbed ~19% over the week, signaling distribution pressure even as whale accumulation continues.
Price Action Overview
- Resistance: $2.993, repeatedly defended during the session.
- Breakdown: Heavy selling between 13:00–15:00 UTC drove XRP to $2.878 on 586.9M volume.
- Range: 24-hour trading spanned $0.144 (4.8%), wider than recent sessions.
- Recovery: A late-session rebound brought XRP to $2.881, showing temporary stabilization.
Technical Summary
- Support: $2.85–$2.87 is key; failure could lead to $2.70.
- Trend: Lower highs under $3.00 indicate a bearish bias.
- Volume: 7x daily average highlights institutional liquidation.
- Momentum: Late-session recovery hints at short-term stability, but overall setup remains fragile.
What Traders Are Watching
- Will XRP hold $2.85–$2.87 support?
- Impact of Ripple’s OCC charter decision on U.S. regulatory positioning.
- Influence of Bitcoin’s $125K levels on altcoins.
- Whale accumulation and on-chain distribution patterns.
- Upcoming SEC ETF decisions as potential market catalysts.
