What to Know:
- XRP experienced a sharp intraday price drop, breaking key support levels.
- Trading volume surged during the selloff, indicating strong selling pressure.
- Technical analysis suggests a bearish outlook unless XRP reclaims critical resistance levels.
XRP experienced a notable price decline as sellers overwhelmed crucial support areas, leading to liquidations across various exchanges. This downturn occurred amid heightened institutional activity, marking the heaviest trading volume observed in over a week. The cryptocurrency market is closely watching how XRP navigates these pressures.
The price of XRP fell by 7.5% in a 24-hour period, moving from $2.40 to $2.22 after it breached the $2.28 support level. This breakdown was accompanied by a surge in trading volume, reaching 137.4 million, which is 84% higher than the daily average. The surge in volume confirms the intensity of the selling pressure.
Technical analysis indicates a bearish bias for XRP after multiple failed attempts to breach the $2.40 resistance. Momentum indicators have turned negative, with the Relative Strength Index (RSI) moving into oversold territory. The surge in volume during the breakdown, contrasted with lower participation during the rebound, suggests institutional distribution.
Traders are closely monitoring the $2.20 level as potential support amid ongoing selling pressure. A break below this level could lead to further declines toward $2.10–$2.00. Conversely, a solid close above $2.28 is needed to counter the current downtrend and target resistance levels at $2.35–$2.40.
The recent price action in XRP highlights the ongoing volatility and sensitivity to market pressures within the cryptocurrency space. Investors and traders should remain vigilant, monitoring key support and resistance levels while considering broader market trends and regulatory developments. As the digital asset landscape evolves, understanding these dynamics is crucial for informed decision-making.
Source: Original article
