XRP Drops 5% as High-Volume Selling Pressure Dominates Market
XRP experienced a significant price drop, falling 4.5% in the last 24 hours, from $2.254 to $2.164. This decline resulted from a surge in selling pressure that overwhelmed buying activity, pushing the price below key support levels. The cryptocurrency now faces resistance at the $2.20 mark, with technical indicators suggesting a persistent downtrend.
The selling pressure on XRP is intensified by several factors. Increased macroeconomic uncertainty, stemming from US-China trade tensions, fluctuating central bank policies, and setbacks in ETF applications, has dampened investor sentiment across risk assets. While Ripple’s upcoming RLUSD stablecoin launch and regulatory progress in Dubai and Singapore offer potential future positives, these developments haven’t yet provided short-term price support. In fact, XRP is down almost 9% for the week.
Hourly chart analysis reveals a descending channel pattern, a bearish indicator signaling a continuation of the downward trend. High trading volume during attempts to break above resistance levels further reinforces this bearish signal. Unless buyers regain control above $2.20, analysts predict a further decline towards $2.10.
The most significant selling pressure occurred between 3 PM and 4 PM, when volume more than doubled the daily average, establishing strong resistance around $2.19. A brief recovery later in the day pushed XRP to $2.179, but sellers quickly reasserted dominance. A final high-volume drop at 2:01 AM drove the price down to $2.162, confirming a lower low and extending the downtrend. Support has solidified around $2.147, with XRP currently trading near $2.164 as volatility subsides.
Technically, immediate resistance is at $2.175, while the descending channel pattern indicates continued bearish pressure. However, the recent decrease in selling volume suggests potential near-term stabilization. The situation remains volatile and requires continued monitoring.
