Ripple’s XRP Faces Increased Sell Pressure After Failing to Maintain $2.12 Breakthrough
Ripple’s XRP is currently facing heightened sell pressure after struggling to maintain its recent breakthrough above $2.12. Despite a minor gain, XRP has underperformed relative to the broader cryptocurrency market.
Recent Performance Overview
On Tuesday, XRP saw a modest increase of 0.50%, bringing its price to $2.0925. However, this performance fell short of the broader crypto market’s gains, lagging by 1.77%. Notably, trading volume surged by 37.94%, signaling significant interest from institutional investors. Despite this increase, the volume did not translate into sustained upward momentum for XRP.
Resistance Levels Examined
XRP briefly crossed the $2.12 resistance level, peaking at $2.17 before experiencing a rapid decline. This price action indicates that larger holders might be using the heightened liquidity to unwind their positions instead of accumulating more.
Market Trends and Technical Analysis
The trading session reflected broader market dynamics, with major cryptocurrencies like Bitcoin (BTC) and Solana (SOL) attracting fresh capital. Conversely, XRP’s order book revealed aggressive selling, indicating a potential distribution phase during recent rallies.
The inability of XRP to maintain above the $2.12 mark confirms this resistance. During the breakout attempt, a significant volume of 189.7 million tokens was traded, far exceeding typical levels. This pattern suggests the current market structure is in a short-term compression phase, with trading confined between $2.083 and $2.17.
Volume and Support Dynamics
The higher lows observed since hitting $2.083 provide some support, yet XRP’s failure to gain traction beyond $2.12 keeps sentiment neutral to bearish. Indicators show a mild bullish divergence from the recent low, but declining trading volume during price recoveries raises concerns about further upside.
Price Action Summary
XRP started the trading session with slight gains but soon fell to the $2.083 mark before stabilizing. A brief recovery toward $2.17 met with strong selling pressure, leading to a considerable volume spike of 184% above the 24-hour simple moving average. Ultimately, XRP settled into the $2.09 to $2.10 range, where it found some support but failed to follow through with substantial upside.
Future Price Expectations
For traders, maintaining the $2.09 level is crucial for determining short-term price direction. A drop below this threshold could expose XRP to further declines toward the $2.05 and $2.00 support zones. Conversely, any successful recovery necessitates reclaiming the $2.12 and $2.17 levels, areas that are currently facing heavy selling pressure.
- Current support: $2.09
- Next support zones: $2.05 and $2.00
- Key resistance levels: $2.12 and $2.17
While institutional activity remains apparent, it appears more aimed at liquidity harvesting than building long-term positions. Without strong volume to support upward movements, XRP may continue to lag, especially amidst ongoing bearish sentiment. Traders should monitor market breadth and volume trends for signs of accumulation favoring buyers.
