XRP fell sharply on Wednesday as sellers overran key support zones, prompting widespread liquidation on exchanges as institutional flows prompted the heaviest trading activity in a week.
News background
XRP fell 7.5% in 24 hours, sliding from $2.40 to $2.22 in a broad-based sell-off that accelerated after the token breached the $2.28 technical support. The breakdown opened alongside a surge in trading volume that reached 137.4 million, representing an 84% spike above the daily average.
The selling wave subsided at 15:00 GMT, when cascading stop orders fueled downward pressure, forcing XRP through several short-term support levels. The decline spanned a $0.21 range, underscoring increased volatility as traders eased positions.
By the late session, trading activity fell sharply to 7.0 million as selling momentum cooled. The sharp contraction in volume reflects fatigue among short-term participants following one of the steepest intraday declines this month.
Summary of Price Action
The price briefly stabilized near $2.20 before rebounding moderately to $2.224, forming a series of higher lows by 02:12 GMT as short-term buyers entered oversold levels. The move reflected tactical accumulation rather than directional belief, as the broader structure remained bearish.
Despite the bounce, XRP failed to capture the $2.28 breakdown level, confirming the shift in market control to the sellers. Consolidation around $2.218 dominated the final trading hours, highlighting indecision amid a liquidity drain. The pattern mirrors pre-breakdown phases where stabilization of low volume is preceded by either short-lived recoveries or further declines.
Technical Analysis
XRP’s daily structure is now confirming a firm bearish bias following multiple failed retests of the $2.40 resistance zone. The decisive break below $2.28 marked the completion of a downward channel formation seen on the 4-hour chart, a pattern usually associated with the continuation of setups in corrective markets.
Momentum indicators turned negative as the RSI moved away from neutral levels into mildly oversold territory, while the MACD reading crossed bearish alignment for the first time in two weeks. These signals support the near-term continuation thesis unless XRP retraces the $2.28-$2.30 pivot range.
Quantitative analytics reinforces the bearish view, with an 84% surge during the collapse sharply declining participation during the rebound—a classic signature of institutional distribution rather than retail-driven volatility.
What entrepreneurs should know
Traders are focused on whether $2.20 can hold as temporary support amid continued selling pressure. A decisive break below this level would expose $2.10-$2.00, where earlier consolidating zones provide limited technical cushioning.
Conversely, recovery efforts require a firm near $2.28 to neutralize the current downtrend and open a path to $2.35-$2.40 resistance. Sentiment in the short-term market remains fragile as derivatives data shows an increase in short exposures and decreased demand area.
