XRP declined nearly 4% during Tuesday's trading session as institutional selling pressure triggered a breakdown from the $2.99 resistance level.
Trading volume surged to seven times the daily average, confirming significant liquidation activity, with prices finding stability only after testing the $2.878 support zone.
Market participants are now monitoring whether the $2.85–$2.87 support band will hold ahead of Ripple's crucial banking charter review deadline.
Market Context
- Ripple's application for a U.S. national banking charter faces regulatory scrutiny, with the October 7 OCC deadline representing a pivotal moment in the evaluation process.
- Global macroeconomic factors continue to pressure markets: ongoing trade tensions and divergent central bank policies are reducing liquidity across both foreign exchange and cryptocurrency markets, particularly affecting enterprise-focused tokens like XRP.
- Binance custody reserves increased approximately 19% over the past week, indicating distribution pressure despite continued whale accumulation visible in on-chain data.
Price Movement Analysis
- Resistance: The $2.993 level solidified as a technical ceiling following multiple rejections accompanied by elevated trading volume.
- Sell-off: The most significant price decline occurred between 13:00–15:00 UTC, with volume exploding to 586.9 million units and price collapsing to $2.878.
- Trading Range: The 24-hour price swing of $0.144 (4.8%) exceeded recent sessions, highlighting fragile market depth and order book instability.
- Recovery Attempt: A final-hour bounce from $2.858 to $2.881 (+0.8%) indicated short-term stabilization as algorithmic traders capitalized on thin market liquidity.
Technical Perspective
- Resistance: The $2.99–$3.00 range remains a firm technical barrier.
- Support: The $2.85–$2.87 zone represents critical support; a breakdown could open the path toward $2.70.
- Volume: Trading volume reaching 7x the daily average confirms substantial institutional exit pressure.
- Trend: Consistent lower highs below $3.00 maintain a bearish bias until clear reversal signals emerge.
- Momentum: The late-session minor recovery suggests temporary stabilization, though the overall technical structure remains vulnerable.
Market Focus Areas
- Whether XRP maintains the $2.85–$2.87 support zone or extends declines toward $2.70.
- Ripple's OCC charter decision and its implications for U.S. regulatory positioning.
- Bitcoin's potential breakout above $125,000 and its correlation impact on altcoins including XRP.
- Whale movement patterns following Binance reserve increases and broader on-chain distribution trends.
- Upcoming SEC ETF decisions in October as potential market sentiment catalysts.