Market strategists warn that crypto remains vulnerable to further downside, as heavy token movements and macro uncertainty continue to fuel instability across major assets.
XRP posted one of its steepest intraday declines in recent weeks, slicing through the key $2.30 level and reversing its earlier gains. The selloff unfolded just as a landmark event took place: Canary Capital’s XRPC—the first U.S. spot XRP ETF—became officially effective on Nasdaq at 5:30 PM ET. While the ETF marks a major step forward for institutional access to XRP, the launch was overshadowed by a persistent market-wide downturn.
Overall sentiment remains deeply risk-off. FxPro analyst Alex Kuptsikevich emphasized that crypto markets still resemble “a short-term bounce within a broader downtrend,” pointing to structural fragility across major tokens. That caution is reinforced by on-chain data, which recorded 110.5 million XRP shifting between unknown wallets during the period of highest volatility, intensifying concern among traders.
Technical Analysis
XRP’s chart action confirmed a clear breakdown, signaling damage that traders must respect:
Support & Resistance
- The $2.29–$2.30 zone now serves as primary support after the decisive breach
- Former support levels at $2.36, $2.40, and $2.47 have flipped into resistance
- Bulls must reclaim $2.36 to invalidate the bearish structure
Volume Profile
- Daily trading volume jumped to 157.9M (+46%), reflecting strong distribution pressure
- A 254% surge in hourly volume during the breakdown aligns with forced-liquidation dynamics
- After the crash, consolidation showed no significant recovery volume, signaling ongoing weakness
Chart Structure
- The descending triangle pattern failed definitively, erasing the prior reversal outlook
- Price is forming a new, lower consolidation range between $2.29 and $2.33
- The move fits neatly within the broader medium-term downtrend seen across crypto indexes
Momentum Indicators
- Intraday oversold signals appeared but have not produced confirmation of a trend reversal
- Price remains well beneath major EMAs, with the 50D/200D structure continuing to slope downward
What Traders Should Focus On
XRP now sits at a decisive pivot point:
- Holding the $2.29 floor is crucial—losing it opens the door to rapid downside toward the $2.00–$2.20 demand zone
- A meaningful rebound begins only once price reclaims $2.36, the key invalidation level for bears
- Early inflows into XRPC at the next market open will determine whether institutions see the ETF as a buying opportunity or a liquidity exit
- The recent 110.5M XRP whale transfers remain a major variable; any shift toward exchange wallets would confirm heightened downside risk
- With sentiment fragile across the majors, XRP—being a high-beta asset—is likely to exaggerate broader market moves
