XRP Slides 6% as Bearish Bitcoin Sentiment Weighs Down Ripple-Linked Token
XRP experienced a sharp decline, dropping 6.4% to $2.20 with high institutional trading volume and breaking key support levels. Bearish momentum pushed XRP to a session low of $2.08 before stabilizing. The token's recovery attempts above $2.22 failed amid persistent resistance, signaling limited market confidence. Technical analysis confirms a short-term downtrend, with consistent lower highs and lows, high volume during sell-offs, and weakened momentum indicators. Traders are monitoring the $2.08 support level to prevent further declines toward $2.00 and require a recovery above $2.22 to re-establish bullish momentum. Institutional trading activity highlights active repositioning within the market.
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XRP's Sharp Decline and Key Support Levels
XRP plunged sharply during Tuesday’s session, breaking below key support levels on exceptional volume as bearish momentum strengthened. Traders targeted the $2.00 psychological zone, signaling a significant shift in market sentiment.
News Background and Trading Behavior
XRP fell 6.4% to $2.20 over 24 hours, sliding from an intraday high of $2.35 amid heavy institutional selling pressure. The token traded across a wide 12.4% range as the broader crypto market stabilized, highlighting XRP’s isolated weakness.
Trading volume spiked to 356.7 million, representing a 126% surge above the 24-hour average, confirming institutional participation in the breakdown sequence. Strong resistance levels persisted at $2.37, with rebound attempts to $2.33 and $2.23 repeatedly rejected, marking a structural shift from accumulation to active distribution.
Price Action Summary
Price action turned sharply bearish after the $2.17 breakdown, driving XRP to a session low of $2.08 before stabilizing around $2.20. Intraday data revealed a brief recovery from the $2.11 base, with price climbing 4.5% to $2.209 on a short-term volume burst of 5.8M tokens.
However, the rally stalled at $2.216 as liquidity faded. The late-session bounce coincided with news that Ripple’s RLUSD stablecoin crossed $1 billion in market capitalization, but technical dynamics remained the primary driver.
Technical Analysis
The session confirmed a decisive bearish bias, with XRP forming consecutive lower highs and lower lows from the $2.37 resistance peak. This pattern validates a short-term downtrend, reinforced by volume expansion during selloffs and contraction during rebounds — a classic signature of institutional distribution.
Momentum indicators turned negative, with the relative strength index trending near neutral after falling from overbought territory earlier in the month. The failure to reclaim the $2.17 line suggests further weakness unless renewed demand emerges around the $2.08-$2.11 consolidation base. While XRP’s structure hints at a possible oversold recovery, volume divergence and failed retests imply rallies may continue to face heavy resistance until broader market sentiment improves.
Key Levels and Trader Insights
Traders are closely monitoring whether XRP can hold above the $2.08 support to avoid accelerating losses toward the $2.00 psychological level. A sustained recovery above $2.22 would be required to re-establish a bullish footing, while failure to maintain current levels risks triggering another wave of liquidation.
Institutional volume spikes during declines confirm active repositioning rather than retail-driven volatility. For tactical traders, the $2.17–$2.22 zone represents the key inflection range, which could define short-term direction.