XRP Slips 3% as Bearish Momentum Breaches Key Support

XRP continues to face intense market pressure, dipping nearly 3% in the last 24 hours as it breaks below crucial support levels, reflecting increasing bearish sentiment in the crypto market.

At the time of writing, XRP is trading around $2.20, marking a notable decline of 2.71%. The recent price drop aligns with a descending channel trend that has emerged over recent sessions. A significant volume spike, exceeding 1.2 million XRP tokens traded, occurred just before the drop, suggesting a broad sell-off driven by fading investor confidence.

XRP’s market capitalization shrank by an estimated $6 billion during the session, contributing to a 9.11% drop over the past week. This trend mirrors wider market instability influenced by macroeconomic factors and evolving investor sentiment in the digital assets space.

Ripple’s Ecosystem Updates

Amid the technical downtrend, Ripple, the company behind XRP, continues to push forward with foundational initiatives aimed at long-term growth. Rather than disrupting traditional financial systems entirely, Ripple is now focusing on integrating digital assets within existing financial infrastructures.

Ripple has spotlighted strategic developments such as its recently announced RLUSD stablecoin project and the high-profile acquisition of digital infrastructure provider Hidden Road. These moves are expected to bolster XRP’s functionality in cross-border payment systems — one of Ripple’s core value propositions.

Additionally, Ripple is advancing its international footprint by collaborating with regulators in the UAE to pioneer tokenized real estate solutions. This expansionist approach indicates Ripple’s vision of XRP being a central asset in global financial ecosystems.

In another noteworthy development, a major Chinese financial firm, Webus, filed plans with the U.S. Securities and Exchange Commission to raise $300 million, a large portion of which is designated to establish a strategic XRP reserve. This signals granular but strong institutional interest in XRP despite near-term market turbulence.

Analyzing XRP’s Technical Trajectory

Technical analysis from CoinDesk Research highlights robust resistance in the $2.265–$2.270 range, where XRP has failed to break out multiple times. Each rejection has been marked by elevated trading volume, reinforcing the notion that sellers are firmly in control.

On the flip side, the $2.10–$2.15 zone is emerging as a possible support floor. However, diminishing momentum and continued selling pressure suggest that this level could soon be tested again. A decline below $2.204–$2.206 occurred early Thursday, with trading volume exceeding 399,000 units, confirming the bears’ grip on the market.

Some traders remain cautiously optimistic. A potential double bottom pattern has been observed, with prices rebounding to $2.208 amidst growing volume (446,000+ XRP), possibly indicating the early stages of short-term accumulation.

Moreover, open interest in XRP derivatives has jumped above $4 billion, suggesting increased liquidity and a potential short squeeze scenario if sentiment were to reverse. Still, the prevailing pattern—described as an inverted V on the daily chart—echoes the abrupt transition from buyer optimism to an aggressive sell-off, limiting bullish bets for now.

XRP Market Recap

• XRP declined by 2.71%, falling from $2.269 to $2.190 within a 24-hour span.
• Current chart patterns form a descending channel, consistent with bearish momentum.
• Repeated resistance at $2.265–$2.270 backed by strong sell volume.
• Support levels near $2.202–$2.205 are showing signs of vulnerability.
• Increased trade volume of 399K during the $2.204–$2.206 dip indicates strong sell pressure.
• A rebound to $2.208 with 446K volume hints at the formation of a double bottom and possible accumulation.

While short-term indicators remain bearish, long-term prospects for XRP may be buoyed by Ripple’s broader strategic initiatives and positive moves by institutional players. Traders should watch closely for volume-driven breakouts or breakdowns as XRP continues to seek direction within turbulent crypto markets.

Related: Expert Advice: Sell XRP If You’re Confused

Disclaimer: Portions of this article were created using AI-assisted tools and reviewed for accuracy and compliance with journalistic standards by CoinDesk’s editorial team. For more details, please refer to their full AI Policy.