XRP trades narrowed after a volatile stretch, holding above short-term support as market participants weigh renewed risk exposure. Strategists warn a deeper pullback towards $1.55 remains possible before an attempted structural recovery towards the $7-$27 corridor.
News background
- The token was steadied by Thursday’s Asia -US crossover, combining between $2.34-$2.39 after a sharp rally earlier in the week.
- A midday advance to $2.39 on October 18 drew 42.23 million in volume—nearly double the 24-hour mean—before fading into a tight band near $2.35.
- Market sentiment remains cautious amid $19 billion in cross-crypto divestments triggered by rising trade tensions.
- The proposed $1 billion capital increase and the ongoing SEC review of the six-spot XRP ETF filings continue to shape the positioning. Institutional desks report lighter exposure to foreclosures and rounds on cash collateral as traders prepare for policy headlines and macro catalysts.
Summary of Price Action
- XRP moved in a compact 2% range throughout the October 18-19 session, carving out a floor near $2.34. Bulls temporarily retested the $2.39 ceiling before sellers reloaded.
- Thin volume in the back half of the day-a classic pre-break compression.
- The final hour (07:10–08:09 UTC) saw XRP rebound from $2.34 to $2.35 on 590k in turnover, suggesting the earlier fade may have been a false break rather than a clean trend reversal.
Technical Analysis
- The price structure remains neutral-to-pullish as XRP is trading above the $2.34 support. Intraday action shows a pocket of accumulation forming within the $2.34-$2.35 band, with clear resistance anchored near $2.39.
- Momentum models show a decline in volatility and a reset of the RSI after the previous overshoot.
- A decisive break above $2.39 reopens $2.47, while failure to hold $2.34 exposes the $2.28-$2.31 cluster. Longer-term Technicians flag a potential 40% correction toward $1.55 if broader risk-off sentiment intensifies—a move that could set the stage for the next initial advance.
What traders are watching
- Desks are watching ETF titles on October 25 as potential volatility. A reclamation of $2.40 with volume confirmation could ignite the next wave towards $2.65.
- Macro traders remain wary of US-China tariff developments and fed language around liquidity – both viewed as catalysts for the next impulse move.
