XRP Faces Significant Decline

XRP experienced a notable decrease, plummeting 7% to $2.05 as substantial institutional selling overwhelmed a key support level. This shift has forced the token back into the correction range it saw last November, despite some impressive ETF inflows.

• XRP spot ETF inflows reached $666.6 million this month, largely due to the new TOXR listing by 21Shares.
• Forex supply dropped by 45% over the past two months, suggesting significant accumulation.
• On a positive note, Whale Wallet has accumulated 150 million XRP since late November.
• However, selling pressure intensified on Tuesday as risk assets generally declined.

While the institutional infrastructure for XRP has grown, short-term capital inflows have taken a downturn. ETF interest hasn’t been enough to offset the large sell-offs and unwinding of derivatives in the afternoon session. The overall market liquidity reduced as broader cryptocurrency measures weakened, contributing to the decline.

The drop below $2.16 marked a significant breakdown in XRP’s recent consolidation, a level that had been pivotal for about three weeks. This breakdown acted as a clue for sellers to regain momentum.

This movement has pushed XRP into a descending channel characterized by successive lower highs at $2.38, $2.30, and $2.22. This trend suggests growing bearish control, with each bounce showing less follow-through than before.

Trading volume surged to 392 million, over 4.6 times the average, validating the breakdown. This level of activity often points to a substantial flow rather than mere fluctuations. Although buyers attempted to defend the $2.05 mark with several intraday rallies—each surging above $3 million—no definitive reversal took shape.

Momentum indicators are showing signs of being severely oversold in the short term, though not enough divergence exists to confirm an end to the ongoing correction. The $2.05 to $2.00 area remains crucial. If that support fails, we could see a larger demand range form between $1.80 and $1.87 in November.

XRP slid from $2.21 to $2.05, marking a 7.2% decline overall. The steepest selling occurred after the drop below $2.16, leading to a wave of liquidations until the market closed. Sales increased to 309.2 million, up 464% from the daily average, showing concentrated distribution.

The hourly candlestick has established a descending channel that pulls down both highs and compresses the range. Attempts to rebound around $2.12 have repeatedly shown strong selling pressure. While buyers managed to absorb the $2.05 decline, their momentum wasn’t sufficient to reclaim the broken support.

• Maintaining $2.05 is critical; a breakdown here could indicate a dip to $1.87–$1.80.
• A recovery to $2.16 is necessary to counter the current bearish trend.
• ETF inflows may bolster long-term potential, yet short-term funds appear heavy.
• It’s worth monitoring for bullish divergences in hourly RSI and MACD as possible early reversal signals.
• A significant bounce back to $2.12 to $2.16 could suggest that accumulation is resuming.